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evan1941
New Member

Where do I subtract the income that is reported on the 1099-MISC for a rebate that is not taxable income ?

I received a rebate (and 1099-MISC) from a Municipal Water District for the removal of turf and installation of drought tolerant landscape. I spoke with an agent from the IRS law department who researched the issue and told me that the rebate is not taxable income.
I entered information from the 1099-MISC. How do I subtract the amount of that income and add a statement referring to the information that I received from the IRS agent? I have his IRS ID number.
1 Best answer

Accepted Solutions
DianeW
Expert Alumni

Where do I subtract the income that is reported on the 1099-MISC for a rebate that is not taxable income ?

You can show a negative number in Line 21 with the caption, “Rebate Income Adj.”  The negative number on Line 21 will adjust the income of the reported rebate.  

You can enter a negative income adjustment with the following menu path:

  1. Federal Taxes
  2. Wages & Income
  3. Less Common Income (image attached)
  4. Miscellaneous Income
  5. Start
  6. Other Reportable Income
  7. Start
  8. Other Taxable Income
  9. Description = “Rebate Income Adj
  10. Amount = -$xxx

TurboTax will transfer this to your Form 1040, Line 21, Page 1.

View solution in original post

2 Replies
DianeW
Expert Alumni

Where do I subtract the income that is reported on the 1099-MISC for a rebate that is not taxable income ?

You can show a negative number in Line 21 with the caption, “Rebate Income Adj.”  The negative number on Line 21 will adjust the income of the reported rebate.  

You can enter a negative income adjustment with the following menu path:

  1. Federal Taxes
  2. Wages & Income
  3. Less Common Income (image attached)
  4. Miscellaneous Income
  5. Start
  6. Other Reportable Income
  7. Start
  8. Other Taxable Income
  9. Description = “Rebate Income Adj
  10. Amount = -$xxx

TurboTax will transfer this to your Form 1040, Line 21, Page 1.

6760stan
Level 2

Where do I subtract the income that is reported on the 1099-MISC for a rebate that is not taxable income ?

where can I find menu path you are talking about? I don't see where "federal taxes" is. Is it under one of those file, edit, view, tools, online, help tabs? FYI, I am using home and Biz edition if that matters.

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