I have a 1099-MISC from the gas company that tore up my yard and then paid me to pay the company that fixed it. It was a reimbursement, not income - how do I show that?

Forum|Forum|7 years ago
June 3, 2019
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I need to somehow not claim that amount as income - it's hurting my return.

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Go ahead and enter it in the 1099-MISC interview, making sure not to describe it as part of your main job, expected to happen again and obtained through an intent to make a profit.

It will end up on Line 21 of your Form 1040 (Other Income).

In the Other reportable income interview, enter a negative amount equal to what you paid to repair the damage to your yard. Identify it as 1099-MISC Damages.

(This interview is under Federal Taxes > Wages and Income > Less Common Income > Miscellaneous Income).

Anonymous

Answer

Go ahead and enter it in the 1099-MISC interview, making sure not to describe it as part of your main job, expected to happen again and obtained through an intent to make a profit.

It will end up on Line 21 of your Form 1040 (Other Income).

In the Other reportable income interview, enter a negative amount equal to what you paid to repair the damage to your yard. Identify it as 1099-MISC Damages.

(This interview is under Federal Taxes > Wages and Income > Less Common Income > Miscellaneous Income).