1099-MISC Box 6 - Amount is a GRANT

[jdegeorge]

Hi

I received some money as a grant/reimbursement to cover the costs of my father's respite care.  The institution issued 1099-MISC Box 6.  TurboTax is stating that I need schedule C for Self-Employed business.  The issuer says I can deduct the related expenses but where do I do that?

[ColeenD3]

Yes, that is correct.

Box 6: Medical and Health Care Payments (Money you received to pay for health care.)

Entering this amount in Box 6 will bring you to Schedule C where you can deduct your expenses.

[jdegeorge]

Hi Colleen

Thanks for the quick response.  Schedule C is looking for business name, type code, etc.  I'm not any of that.  The closest business code was 623000 Nursing and Residential Care Facilities, but again, I'm the caregiver at home and not a business.

This is frustrating.  😉

[JamesG1]

This TurboTax Help confirms that self-employment is how it is reported.

Do you have expenses to offset against this income?  That would be the advantage of reporting self-employment income.

[jdegeorge]

The grant was to offset the cost of respite care for my father, which exceeded the grant amount.  I probably should only take a credit up to the amount of the grant.  Where on Schedule C is that done?  Thanks!

[JohnW222]

In TurboTax Online:

1. Go to Tax Tools.
2. Go to Tools.
3. Go to Topic Search and type in "schedule c”
4. Select "schedule c", and click GO.

This will take you to the interview where you can enter your expenses.

[jdegeorge]

Thanks, but I don't use the ONLINE version.  

[ThomasM125]

I'm not sure what version of TurboTax you are using, so I can't be too specific, but once you enter your 1099-MISC form you should be offered the option of entering expenses which will generate the schedule C.

If you aren't offered that option, then you need to go back and answer the questions regarding the form 1099-MISC entry to indicate that you are self-employed.