A USDA grant is not subject to self employment tax because it's not earned income. All profits from a schedule F are subject to 15.3% SE tax. A grant is entered under "Other Common Income", I've attached a page snip below to help locate it;
Cattlerancher - We are in the same situation, but are being told by an IRS agent that the grant needs to go to the schedule F and be subject to SE tax. Do you have a reference so we can get out of the SE tax on this? Thanks!
I was also told that grants are not considered earned income.
My 1099-G has an amount for EQIP funding in box 6. Is this subject to SE tax? I can't make TT put it onto the Schedule F unless I move the funds to box 7, it shows up on the 1040 as "Other income."
I have the same problem. I received a 1099-G with box 6 "taxable grant" for EQIP wildlife improvement, the funds used to pay for mowing the acreage to comply with the program. How can I offset the income with this expense as an individual landowner?