crp farm payment

[selliottzeus]

Some background. I sold oil and gas land that was receiving CRP payments. The new owner neglected to change the deed. Feds sent me the CRP payment, then demanded it back. I had to send them a check. However, I received a 1099-G and had to file that last year. The feds do not send out a correction 1099-G. They said to claim it on this years taxes.  So, where and how do I do that? The tax paid on the payment was nearly half. also, the payment was under $3000. 

Thanks

[PatriciaV]

Enter the same 1099-G information as last year but enter a negative amount. This will reduce your taxable income this year. Be sure you keep good documentation for this entry, especially the instructions from the government to claim the correction this year.

[selliottzeus]

Yeah, i tried to do that. I can't get the program to deduct the amount. I even tried saying I had a 1099-g. Ill go back and try other options.

Thanks!

[PatriciaV]

Your other option would be to report the amount from 1099-G as a Farm Expense this year. Even if you no longer have the farm, you should be able to report only this expense to offset the income & taxes from last year.