I received a 1099MISC for bad roofing material from the manufacturer and used the money to replace the bad roofing material. How do I keep this from going to income?

[joeraines1]

I received a 1099MISC for bad roofing material from the manufacturer and used the money to replace the bad roofing material. How do I keep this from going to income?"

[joeraines1]

Where to I report the negative amount?

[Critter · Accepted solution]

You will make 2 line 21 entries ... one for the income and another as a negative amount for the repairs to negate the first entry.

You can report it on Form 1040 line 21. Here's how to enter it in TurboTax.

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         Click "I'll choose what I work on."

·         On the screen "Your 2016 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.

[joeraines1]

Where to I report the negative amount?

[Critter]

You will make a second line entry in the same place as the first.