topic 1099-G not processed correctly in Get your taxes done using TurboTax

1099-G not processed correctly

Alliea123 — Wed, 12 Feb 2020 05:58:20 GMT

I work as a postbac research fellow at the NIH. Per the NIH handbook, the amount earned as a taxable grant on my 1099-G is supposed to be entered on my 1040 as "other income" (https://www.training.nih.gov/assets/2019_Postbac_Handbook_(508).pdf page 50). The handbook also states that I should not be considered to be self-employed. TurboTax files the grant as unearned income., increases my tax rate to match my parents', and labels me as self-employed.

Is there a way to correct this within TurboTax? I tried talking to one of the live representatives, but all she kept saying was "I'm sorry I can't change the IRS rules."

Re: 1099-G not processed correctly

LeonardS — Wed, 12 Feb 2020 15:42:35 GMT

Yes, you can enter your grant as income not subject to self-employment tax.

To enter your grant follow these steps.

With TurboTax open select  Wages & Income click on I'll choose what I work on
Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C
On the next page, select Other reportable income
On the page, Other Taxable Income enter Grant in the description.

This will put the income on Schedule 1 Line 8 of your Form 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.