Does a 10,000 relocation assistance/incentive for a deed in lieu. I will receive a 1099 misc form from them. Is this fully or even partially non-reportable?

[daver123]

The deed in lieu was concluded in 2015 for which I reported to the IRS last year. The "incentive" of 10,000 was received in January of 2016. If I receive a 1099 misc from them how do I, or do I need to report it?

[daver123]

doesn't "HARP" figure into this to make it non-taxable?

[ToddL]

I'll check that tomorrow, however, I'm 99% certain it doesn't. I did a HARP and it isn't related to the relocation incentive in lieu of.

[ToddL]

There aren't any provisions in HARP for relocation assistance. It on comes into play when you want to refinance at a lower rate and nee certain criteria.  <a rel="nofollow" target="_blank" href="https://www.harp.gov/About">https://www.harp.gov/About</a>

[daver123]

sorry, I mean HAFA Home Affordable Foreclosure Alternatives Program (HAFA)  




HAFA® provides homeowners the opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale or a deed-in-lieu of foreclosure (DIL). It also provides homeowners with $10,000 in relocation assistance.

Application Deadline: December 30, 2016

[ToddL · Accepted solution]

If you receive a Form 1099-MISC for the relocation assistance/incentive payment, you must report it on your tax return - exactly as it is filled out by the issuer. 

Relocation assistance is taxable. It won't be self-employment income, but needs to be entered in the Income from Form 1099-MISC interview. The income is not compensation for service, not related to your main job and not from an intent to profit.