Alaska energy rebate

[J000059]

The IRS today, 2/10 issued clarification on the taxability of state stimulus rebates.  Included in that determination, the energy rebate portion of the Alaska combined pdf plus energy rebate payment is not required to the reported as income.  The state previously issued 1099-MISC indicating the combined amount, 3,284 in box 3.  Below the 1099-MISC the "funding for the pfd dividends" it lists several items including "Resource Rebate = 662.19".  So based on this IRS determination, I believe that the taxable portion of this 1099 is 3,284 - 662.19 = 2,621.81. 

How do we enter this in TurboTax since the taxable portion is not listed on the 1099?

Will TurboTax be addressing this item in a future update?

[PattiF]

To enter this in TurboTax so that you are only entering the PFD dividends as taxable income, follow these steps:

You would report the form 1099-Misc in the Income and Expenses section of TurboTax, then Other Income, then Income from form 1099-MISC. Report the entire amount shown in Box 3.

The offset entry would be as follows:

 Go to the Income and Expenses section of TurboTax

 - Choose  Less Common Income

 - Choose Miscellaneous Income, 1099-A, 1099-C

 - Choose Other reportable Income

 - Enter a description and the amount of your offset as a negative number (Energy rebate, -$622)

The 1099-MISC will be entered correctly and the amount that isn't taxable will be deducted.

If necessary, TurboTax will address this in a future update.

[J000059]

PattiF,

Thank you.  

[eatwood907]

Hi, for children whose PFD income is reported on the parents' return, how do we indicate that only 2622 of their total PFD 1099 MISC is taxable due to the energy rebate? In other words, where do we write this in the area for reporting unearned income for a dependent child? Thanks!

[PattiF]

According to the instructions from the IRS for Form 8615, you would only include the part of the income that is taxable.

 

"Nontaxable income.

For this purpose, unearned income includes only amounts your child must include in gross income. Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, isn’t included in gross income."

[rjdjl17]

Maybe I'm Just completely confused. I received two 1099-Misc. Alaska PFD for myself and my Husband, and I also have two for my children. Per turbo tax instructions We report our 1099- Misc for PFD's and report our children under the child's unearned income. I reported the children's 2022 amount $3284.00 but do not know where or how to enter the -662 for the Alaska energy rebate? I read form 8615 but am still unsure about what to do here.

[JohnW152]

Once you’ve entered your Permanent Fund Dividend, you need to make an adjustment for the energy relief payment.  To do this in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit. 
   • Otherwise, in the left pane, select Wages & Income
2. Scroll down and select the Show more dropdown to the right of Less Common Income
3. Select Edit, Edit/Add or Revisit to the right of Miscellaneous Income, 1099-A, 1099-C
4. On the Let's Work on Any Miscellaneous Income page, select Start or Revisit to the right of Other reportable income
5. On the Any Other Taxable Income? page, select Yes
6. On the Other Taxable Income page, enter Energy Relief Payment in the Description box, and enter your adjustment amount as a negative number (i.e., -662, for example), then select Continue

Also, please see the TurboTax Help article Where do I enter my 2022 Alaska Permanent Fund Dividend (Alaska PFD)?, just to make sure that you’re entering your children’s distributions correctly.

@rjdjl17