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caro7mii
New Member

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

This was at the end of August 2019, and we didn't pay any taxes on the funds.  How do I add my portion of these payments to my tax return?
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1 Best answer

Accepted Solutions
Hal_Al
Level 15

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

It is taxable. 

Reference: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/relocation-assistance-from-landl...

 

It goes on Schedule 1, line 8, as other income.  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income -  Answer yes to Any other Taxable Income -On the next screen, Enter the amount.  Briefly explain at description.

View solution in original post

4 Replies

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

I would say this was a discount on your rent and not taxable, unless the payment received in 2019 was more than the total rent you paid in 2019.  

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

Unless they issued a 1099-misc form I would agree ... there is nothing to report. 

Hal_Al
Level 15

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

It is taxable. 

Reference: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/relocation-assistance-from-landl...

 

It goes on Schedule 1, line 8, as other income.  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income -  Answer yes to Any other Taxable Income -On the next screen, Enter the amount.  Briefly explain at description.

caro7mii
New Member

Hi! My aunt and I were renting a house in LA, and we were asked to move so the property could be sold. We received relocation payments in the form of two checks in both of our names. This was at th

Thanks to all who replied.  I was able to complete my return with your assistance.

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