How to enter adjustment to income for 1099-G Taxable grant in 2022 TT Deluxe

How can I enter an amount in 1040 Schedule 1, Part II Adjustment to Income line 24z (Other adjustments) ? Received a 1099-G from USDA for a timber stand improvement cost share. The money was used to pay a forestry consultant for a required Forest Management Plan. Need to adjust Part I additional income, Line 10 by the amount paid to the consultant. The form will not allow editing.

860

1 Best answer

Expert Alumni

Mar 7, 2023 3:48:59 PM

Follow these steps to post the income reversal. Post the negative entry as follows:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click Show more to the right of Less Common Income.
To the right of Miscellaneous Income, 1099-A, 1099-C, click the Start / Revisit button.
To the right of Other reportable income, click the Start / Revisit button.
At the screen Other Taxable Income, enter a description such as “USDA income reversed” and a negative amount.

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.

@JimUSA

Expert Alumni

Mar 7, 2023 3:48:59 PM

Follow these steps to post the income reversal. Post the negative entry as follows:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click Show more to the right of Less Common Income.
To the right of Miscellaneous Income, 1099-A, 1099-C, click the Start / Revisit button.
To the right of Other reportable income, click the Start / Revisit button.
At the screen Other Taxable Income, enter a description such as “USDA income reversed” and a negative amount.

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.

@JimUSA

Level 1

Mar 8, 2023 8:41:39 AM

Thank you very much! I was able to reverse the taxable income.

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How to enter adjustment to income for 1099-G Taxable grant in 2022 TT Deluxe