When do you have to file a grant

[Anonymous]

If it was a grant given by the city for helping artists during the pandemic is it taxable? They sent me a 1099-NEC but I already filed my taxes.

[HelenC12]

Yes, you have to report the 1099-NEC grant money on your income tax return.  The IRS will have gotten a copy of the form and will be matching it to your income tax return.

• If you're required to file a state income tax return. as you're preparing your state return, TurboTax will guide you to determine whether the grant is taxable or not. You can also contact your state's department of revenue to see it's taxable. Each state taxes/not taxes their income differently. See How do I contact my state Department of Revenue?

Since you already E-filed your return, you'll have to amend your income taxes since the 1099-NEC will affect your refund or amount due. The amended form 1040-X has not been completed by the IRS. Please see the TurboTax Forms Availability FAQ to find out when the form will be available.

See also Do I need to amend my state if I amend my federal?

Related information: 

• How to amend (change or correct) a return you've already filed

[Anonymous]

Thanks so much for your reply. Do you know off the top of your head, if the grant is $1000 if they will take a large chunk from my refund? 

[HelenC12]

It's impossible for me to say since this is a tax forum and I can't see your tax information. However, if $1,000 is added to your income and you're in the 15% tax bracket, that may result in additional federal income taxes of about $150.

What you can do is, create a "test" account in TurboTax and enter all your information there to see what affect the $1,000 has on your refund. You don't have to pay for TurboTax since you're not going to file it or print it. 

• See How do I start another return in TurboTax Online? Scroll down to "If you still want to start another return in TurboTax Online".