Taxable grant (1099-G) deductions / expenses

Forum|Forum|2 years ago
April 5, 2024
2 replies
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Where do I report deductions and expenses for a 1099-G taxable grant received in my name? 90% of this grant was simply passed onto other foreign individuals. Should I create a business for the 1099-G grant in Turbotax to list the expenses and figure out my net taxable income?

Thanks in advance for any help!

Best answer by Hal_Al

Q. Should I create a business for the 1099-G grant in TurboTax to list the expenses and figure out my net taxable income?

A. Yes. The fact that you "kept a small percentage of it as a 'business venture' to pay for your time" supports that method.

DaveF1006

To clarify, what was the taxable grant listed for?

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bultitudeAuthor

Thank you for kindly responding! It was a State Department grant mainly to help foreigners travel to the US by funding their flight tickets, hotels, etc.

DaveF1006

Thanks for responding back. No, you would not create a business return to claim expenses because this would be considered tax fraud since you don't have a viable business. Since was a grant to help fund some of your travel expenses but not all, the entire amount is taxable because this was a benefit to you to fund some of your travel expenses. Here is how to report.