Self Employed Business Grant

[berlo]

I am self-employed and I also received a small business grant from the county I live in last year. They sent me a 1099-MISC to report. It took me a while to find out that I don't add that as extra self-employment income, but rather in the dedicated 1099-MISC spot. What is confusing me, is in both sections (self-employed and then in the 1099 misc) it asked me to seek out deductions. So it seems I've added those twice which doesn't seem to make a lot of sense to me. I just want to make sure I'm entering everything into its proper place and not "double dipping" if that makes sense on the deductions. Don't want to have issues on down the line because I entered it all wrong.... but I will say I was just being guided by Turbo Tax online so maybe I did do it correctly?? It also doesn't look like it's added in my total gross income which I thought it would be. TIA for advice/help.

[ShirlynW]

It is qualified as unearned income.

To report the income for the 1099-MISC on line 8z of Schedule 1 follow these steps.

1. Open TurboTax.
2. "Pick up where I left off."
3. Federal > Wages & Income > " Less Common Income" > Miscellaneous Income, 1099-A 1099-C > Start or Revisit.
4. "Other reportable income" > Revisit.
5. On the screen below, select "Yes."

 6. On the screen below, enter the description and amount.

 7. Continue > Done.

@berlo

[berlo]

Thanks, @ShirlynW , but I don't think you understood my question/post. I already know where to enter it... just had extra q's about it. Hopefully, someone can see what I'm trying to ask. 

[ShirlynW]

Correct, the 1099-MISC should only be entered once. It should be entered as "Other income." If there is an entry for the 1099-MISC under "Self-employed," you should delete the entry.

@berlo

[berlo]

I'm actually revisiting this first response. I've been combing back through everything. When I do what you mentioned here... to report under less common income, it says when asked to report income, that "Do NOT enter income reported on a 1099 MISC"... which is what I have. So, is this still where I enter all this info? It was a 1099 MISC for a grant I received. @ShirlynW 

[RobertB4444 · Accepted solution]

You did fine entering the 1099-MISC into the 1099-MISC section.  Leave that there.  Then you need to make sure that the self-employed income that you entered elsewhere does not include that 1099-MISC income.  SO you only entered it once.

The 1099-MISC section is then asking you for expenses directly related to that income.  The expenses entered here should not be expenses that you already entered with your other self-employed income.  Only expenses that are directly related to that 1099-MISC.  For example, if you had to pay a filing fee to apply for the grant or something.  But you are correct - if you entered the expenses in both places then you are double dipping.  So delete them from one or the other so they are only entered once.

@berlo 

[berlo]

thank you.