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?

[30yrs]

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

[MinhT]

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).