We received $7,500 from earnest money when a potential buyer of our house broke the contract. What category is that? What form is needed?
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30yrs
New Member

We received $7,500 from earnest money when a potential buyer of our house broke the contract. What category is that? What form is needed?

Earnest money is additional income, but I don't know where it goes on the turbo tax form.

1 Reply
MinhT
Expert Alumni

We received $7,500 from earnest money when a potential buyer of our house broke the contract. What category is that? What form is needed?

You need to report this income as Other Reportable Income.

In TurboTax, open your return and follow these steps:

  • Click on Federal Taxes, then on Wages and Income
  • Under All Income, locate the Less Common Income section
  • Click Show more and click Start next to Miscellaneous Income at the bottom
  • On the next page, click Start next to Other Reportable Income (see attached screenshot).

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