Trailer damage

[tobyfan2]

I received a 1099R Misc for reimbursement of a trailer that was under warranty when it was damaged.  They basically gave me back the money I had originally put down.  Why I am I getting a 1099R for this? What do I do now?

[ThomasM125]

You may have gotten a form 1099-MISC, but not a form 1099-R, as that would be for pension distributions.

You could leave the amount you received off of your tax return since it is not taxable, but the IRS may assess taxes on it later on if you did that.

The best thing to do would be to enter it as income, then enter a negative amount to Other Income to cancel it out. You can use the following menu tabs in TurboTax to accomplish this:

1. Federal
2. Income and expenses
3. Less common income
4. Miscellaneous income
5. Other reportable income

Enter a description for the entry (Returned Prop?)  and the amount as a negative number.