Question

1099 G for Business grant

Forum|Forum|5 years ago
February 2, 2021
3 replies
0 views

I talked to one of the tax pros through customer service and was advised to enter 1099g - Certain Government Payments - Taxable Grants- into Other Business income section which seem wrong, since there is a form 1099 G for personal side, but it only gives an option to report it to Taxpayer or spouse SS number instead of reporting it to business TIN. Considering that with last years financial help to millions of small businesses will be receiving this grant money, it seems to be a failure on software side that this form is omitted from business section.

Please update your software

TurboTax Home & Biz Windows

A

AnnetteB6

Entering the information reported on the actual Form 1099-G in the personal side of the tax return is just a means to get the information reported in the right place on the tax return. The data on the form is not transmitted with the return, only the parts transferred to the Form 1040 showing the taxable amounts.

Similarly, as long as you have reported the taxable grant income on your Schedule C with your other business income, then that is all that is required. The IRS already has copies of the actual Form 1099-G and will match the income reported on your return with the income that they know about based on income forms submitted with your business Federal ID number. The information from the form itself is not required to be included with the tax return.

Thank you for the suggestion that the software be updated, but since the only information truly needed for the return is the amount of the taxable income, it is unlikely that it will be changed.

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A

Anonymous

You forgot to mentiont that TurboTax does not list Grants, on the business section. So the income should be listed under uncommon income on the schedule C.

C

cc2llc2

i agree update the software

N

nnorukam

I agree, Intuit need to update turbotax for business grant, adding it as order income as part of farm income is in the wrong place and should not be personal income either,

Lucy