Form 1099-MISC for Non-taxable gift

[Ben82566]

I received an IDA (individual development account) matched-saving grant of $3000 from a non-government organization for a $600 I put in saving account. The website stated that the grant is considered a nontaxable gift "The match money is considered a gift at the time it is paid out to purchase the eligible asset. It is NOT taxable income to the Participant.". I received a 1099-MISC form with the $3000 reported in box 3 "other income". When I put the 1099-MISC information in TurboTax, there was no place to indicate this was a non-taxable gift and therefore had my expected refund amount reduced by a lot. Is there a place where I can indicate this as being nontaxable or am I not supposed to report the amount if I know it's not taxable? 

[ee-ea]

Since you received the 1099-MISC, 1099-NEC or 1099-K (1099-Form) you will need to enter it into your tax return. If the IRS audits your return, you can show them the situation. You can enter the 1099-Form in the 1099 section and you can enter it in the area where you are subtracting expenses.

Follow these steps:

First enter the income:

1. go to the federal income section

2. scroll to the bottom

3. Miscellaneous Income, 1099-A, 1099-C, Start

4. Scroll to the bottom

5. Other reportable income, Start

6. Other taxable income?

7. Select YES

8. Description 1099-Form, box 3

9. Amount, enter your amount, $$$$$

10. continue

Subtract expenses

1. Miscellaneous Income, 1099-A, 1099-C, Start

2. Scroll to the bottom

3. Other reportable income, Start

4. Other taxable income?

5. Select YES

6. Description 1099-Form expenses

7. Amount, enter your amount, must be less than or equal to the amount on the 1099-Form as a negative, -$$$$

8. continue

[Mike9241]

if it was nontaxable no 1099 should have been issued. contact the issuer to issue a corrected 1099. 

[Ben82566]

There are three places in the federal income section where I can enter the 1099-MISC information: in the "self-employment" section, "other common income" section and "Less common income" section. The "other common income" section asks me to enter all details of the 1099-MISC I received (the amounts and numbers in each box), while the "Less common income" only asks for the income amount. Will I need to report the income in the "other common income" section and then subtract expenses from the "less common income" section? I'm asking because I'm not sure if providing all the details for the 1099 form is legally required, which I only get to do in the "other common income" section. I don't understand the difference between these two sections