1099G instead of 1099Misc or K for COVID rental assistance

[ostace]

I entered the 1099G info already under the income section of the desktop version. I am now trying to complete the rental property section and it is only looking for income as 1099 Misc or 1099 K forms. I received the funds from the State as part of COVID relief. It also didn't cover over 2 months owed - which is a different question. But the money reported on the 1099G is already accounted for as income, so do I enter 0 in the rental income section of the property? I don't want to be taxed twice on an amount that already didn't make me whole.

[JamesG1 · Accepted solution]

I think that you are saying that you reported the income received on a 1099-G under Personal / Personal Income / Other Common Income / Other 1099-G Income.  If so, this will not report the income against rental expenses on IRS Form 1040 Schedule E.

If the purpose of the 1099-G income was to offset a loss of rental income, report the 1099-G income under Business / Business Income and Expense / Rental Properties and Royalties / Rental Income.  I would report the income under No, I did not receive any Form 1099-MISC.

I would not report $0 as rental income.  Is there any other rental income to report?

You are able to check the income on IRS Form 1040 Schedule E by clicking on FORMS in the upper right hand corner of the screen and clicking on Schedule E down the left side of the screen.

See this TurboTax Help.

[ostace]

No other income was received for that property for that calendar year, but I had extensive losses due to damage when the tenant moved out. I have started to receive rental income again in 2022. 

[JulieS]

As JamesG1 says, the 1099-G income should be reported as rental income and not added in as part of your personal income. 

[yiozayioza]

I do not understand what the recommendation is.

The govt sent me a statement on Form 1099G due to a covid payment.  Ignoring that this should have sent on a Form 1099Misc should i just follow where TurboTax recommends it be reported?  Will that underreport my rental income line item?

[yiozayioza]

will the government penalize us because their computer is looking for a  match for the 1099 G

 payments in a certain column?  How do we properly notify the goverment that the income is included as part of gross income for the Schedule C?

[PattiF]

No, the government will not penalize you for entering a form that you received for COVID rental assistance in the rental section. If the IRS has any questions, they will contact you.

You could mail a paper form and include a statement, but the IRS prefers that your return is electronically filed.

@yiozayioza