Our client received income from a Topping Out Fund. Has anyone included that income in local income? We of course include it in federal and state income.

[Cindy0H]

As long as the income is reported in box 3 of your 1099-MISC, report the distribution as Other Income (line 6 of the 1040) (line 21 of the Schedule 1). Here's how:

• Federal
• Income & Wages
• Other Common Income
• Income from 1099-Misc...start
• If taxes were withheld check box "my form has other info in boxes 1-18"...enter info
• Describe: Topping Off Fund
• None of these apply
• No, it didn't involve work like my main job
• I got it in 2018
• No, it didn't involve an intent to earn money

If you have any more question, ask in the comment box below.