Our client received income from a Topping Out Fund. Has anyone included that income in local income? We of course include it in federal and state income.
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Our client received income from a Topping Out Fund. Has anyone included that income in local income? We of course include it in federal and state income.

 
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New Member

Our client received income from a Topping Out Fund. Has anyone included that income in local income? We of course include it in federal and state income.

As long as the income is reported in box 3 of your 1099-MISC, report the distribution as Other Income (line 6 of the 1040) (line 21 of the Schedule 1). Here's how:

  • Federal
  • Income & Wages
  • Other Common Income
  • Income from 1099-Misc...start
  • If taxes were withheld check box "my form has other info in boxes 1-18"...enter info
  • Describe: Topping Off Fund
  • None of these apply
  • No, it didn't involve work like my main job
  • I got it in 2018
  • No, it didn't involve an intent to earn money

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