Taxable grant (1099-G) deductions / expenses

[bultitude]

Where do I report deductions and expenses for a 1099-G taxable grant received in my name?  90% of this grant was simply passed onto other foreign individuals.  Should I create a business for the 1099-G grant in Turbotax to list the expenses and figure out my net taxable income?

Thanks in advance for any help!

[DaveF1006]

To clarify, what was the taxable grant listed for?

[bultitude]

Thank you for kindly responding!  It was a State Department grant mainly to help foreigners travel to the US by funding their flight tickets, hotels, etc.

[DaveF1006]

Thanks for responding back. No, you would not create a business return to claim expenses because this would be considered tax fraud since you don't have a viable business. Since was a grant to help fund some of your travel expenses but not all, the entire amount is taxable because this was a benefit to you to fund some of your travel expenses. Here is how to report.

1. Open your Turbo Tax return.
2. Go federal
3. Wages and Income
4. Other Common Income
5. Other 1099-G Income

[bultitude]

Hmm that doesn't sound right to me.  I kept a small percentage of it as a business venture to pay for my time.  I appreciate you taking the time to respond but I believe you are incorrect.

[Hal_Al · Accepted solution]

Q. Should I create a business for the 1099-G grant in TurboTax to list the expenses and figure out my net taxable income?

A. Yes. The fact that  you "kept a small percentage of it as a 'business venture' to pay for your time" supports that method.