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New Member
posted Jun 4, 2019 6:13:26 PM

Can I Include 1099g taxable agriculture grants on my Schedule F instead of personal income?

These were payments for USDA/NRCS approved practices such as brush clearing, soil testing, mulch, and cover crops.

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1 Best answer
New Member
Jun 4, 2019 6:13:28 PM

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;

7 Replies
New Member
Jun 4, 2019 6:13:28 PM

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;

New Member
Jun 4, 2019 6:13:29 PM

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!

New Member
Jun 4, 2019 6:13:30 PM

I was also told that grants are not considered earned income.

New Member
Jun 4, 2019 6:13:32 PM

Any references?

New Member
Jun 4, 2019 6:13:33 PM

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."

Level 2
Jun 4, 2019 6:13:35 PM

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?

New Member
Jun 4, 2019 6:13:36 PM

I did an override to include it on Schedule F other income from 1099G and now I cannot Transmit them electrinically