Bought a house and received a housing grant from Bank of America (1099- misc)

[lindiwbarrett]

Hi there, 

I just got the 1099-misc from Bank of America showing that they provided $6,510 in free money toward our down payment. However, when I enter this info on turbotax it keeps thinking I was self-employed and wants to know "the job." When I started it, and who is "working. " It won't let me choose both me and my spouse. 

thanks

Lindi

[DaveF1006]

Ouch!!  This shouldn't be reported as Self-Employed income and let me show you a way to circumvent the process to where this will reported as other income and not Self-Employed income.

1. Go to wages and income
2. Scroll to Other Common Income>show more
3. Form 1099-MISC>start
4. Enter the information on the 1099-MISC
5. When it asks to describe the reason for the form, indicate it was a gift of a down-payment from Bof A.
6. Next screen asks Does one of these uncommon situations apply? Select none
7. Next screen asks Did the free money from bank of america involve work that's like your main job? say no
8. Next screen will ask How often did you get income for free money from bank of america. Here you will say you got it in 2021.
9. Did the free money from bank of america involve an intent to earn money? say no
10. Finish out the section
11. When everything is said and done, this will appear as other income on line 8 of your 1040 and not as Self-Employed income.
12. Congratulations on your new home.