Your grant is taxable income. You will have to pay federal and state income tax on the amount your received. To enter in TurboTax:
- Go to "Income"
- Select "Miscellaneous Income, 1099-A, 1099-C" Depending on which version of TurboTax you are using you may need to go to "Less Common Income" first
- Scroll to the bottom of the page and select "Other Reportable Income"
- On the page Other Taxable Income answer Yes
- Enter "USDA NRCS Grant" in the description and enter the amount of your grant.
The income will reported as Other Income on Schedule 1 line 21 of your Form 1040.
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