Mortgage Grant on form 1099-MISC
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jamesinho4
New Member

Mortgage Grant on form 1099-MISC

Hello all.  I received a mortgage grant from my credit union when I bought my home.  I received a form 1099-MISC with this amount.  I've entered it as "other common income" form 1099-MISC on TurboTax, but it's dramatically increasing my federal tax due amount.  I suspect the system thinks it's self-employment income and is assuming I need to pay social security and medicare taxes on it.  Is this correct?  Is there another way I should be entering it?

7 Replies
JamesG1
Expert Alumni

Mortgage Grant on form 1099-MISC

What box was the income reported in on the 1099-MISC?  This sounds like it may have been reported in box 3?

 

Is this a one-time payment (perhaps a rebate?) from your lender?  It does not sound like self-employment income.

 

You can view the tax return by following these steps.

  • Down the left hand side of the screen, click Tax Tools.
  • Click Tools.
  • Click View Tax Summary in the center of the screen.
  • Click Preview my 1040.

Self-employment tax will be listed on line 15 of the 1040.

 

 

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jamesinho4
New Member

Mortgage Grant on form 1099-MISC

This was a one time grant given to me by the credit union as part of their program for first time homebuyers. 

 

It was indeed reported in box 3.

 

I think I figured out how to enter it so it's not charging me for SS or Medicare.  Thanks so much, fellow James!

prd0582
Returning Member

Mortgage Grant on form 1099-MISC

So you just enter it in box 3?  How do I know that I am not paying SS/Medicaid etc on it?  The amount I am getting reduced is large.  The grant I got was for $8,400 and it reduced what I was getting back by $1,937.  23% seems like I am paying all taxes on this as that is my tax bracket....

 

I tried the tax tools/tools/view tax summary like the other gentleman said my line 15 has the amount I am getting back.

prd0582
Returning Member

Mortgage Grant on form 1099-MISC

So you just enter it in box 3?  That is where I entered it.  How do I know that I am not paying SS/Medicaid etc on it?  The amount I am getting reduced is large.  The grant I got was for $8,400 and it reduced what I was getting back by $1,937.  23% seems like I am paying all taxes on this as that is my tax bracket....

 

I tried the tax tools/tools/view tax summary like the other gentleman said my line 15 has the amount I am getting back.

KrisD15
Expert Alumni

Mortgage Grant on form 1099-MISC

Look at your Schedule 2 line 4. 

That is where Self-Employment tax (FICA, Social Security ) would be listed if you entered the 1099-MISC as Self-employment income.

 

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prd0582
Returning Member

Mortgage Grant on form 1099-MISC

No it isnt there either.  Line 4 is my itemize/standard deduction.  I am looking at the Tax Summary page.  I have no idea where the Schedule 2 line 4 is.  How do I get there?  Better yet, how/where do I enter the the grant for my down payment so I can ensure only federal taxes are taken out? 

LeonardS
Expert Alumni

Mortgage Grant on form 1099-MISC

To enter your mortgage grant follow these steps.

  • With TurboTax open select  Wages & Income.
  • Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C
  • On the next page, select Other reportable income
  • On the page, Other Taxable Income enter Mortgage Grant in the description. 

This will put the income on Schedule 1 Line 8 of your  Form 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.

 

If you have entered the 1099-MISC for the mortgage grant you will have to remove it from your tax return.

 

To delete Form 1099-MISC follow these steps:

  • With TurboTax open select Tax Tools in the left panel.
  • Select tools
  • Select delete forms
  • Select delete on the line for Form 1099-MISC
  • Select  Delete Selected Form

 

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