Where do I enter a taxable grant reported on 1099-G as business (and not as private) income, so that self-employment tax is paid on this grant?

[fruehling42]

I run a small business as sole proprietorship and received an SBIR grant from the Department of Energy. The 1099-G shows the name of the company.

[PaulaM · Accepted solution]

You can enter it under your Business income in Other Income. Then enter a description 'SBIR Grant reported on 1099-G' and the amount.

The amount will flow to line 6 of your schedule C and be included in gross income and net income will then flow to the schedule SE.

[wwsmoker]

I'm afraid IRS wont notice this as reporting the government grant income reported to them on 1099G