Question

I rcvd unemployment from the state. (5k) I deposited the amount into my business and paid federal tax on it. How do I add form 1099G without being taxed again?

Forum|Forum|5 years ago
February 2, 2021
1 reply
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I filed for small business assistance and received 5K, though they sent it in my name, and not my business's name. I deposited the money into my business account and paid federal taxes on it. How can I add form 1099-G to my return without being taxed again on the 5k?

TurboTax Self Employed Online

T

ThomasM125

You can enter a negative amount to Other Income to cancel out the grant income by using the following tabs in TurboTax:

Federal
Income and expenses
Less common income
Miscellaneous income
Other reportable income

Enter a description for the entry (dup inc reported?) and the amount as a negative number.

Another option is to leave the reported income off of your tax return, but then you will get a notice from the IRS assessing additional tax, which you will have to correspond with them to get it reversed.

Also, in the desktop version of TurboTax, you can go to the Forms Mode and pull up Schedule 1 and put your cursor to the left of line 22 on Part II and press "enter." A magnifying glass icon will appear that will take you to an Other Adjustments to Income Smart Worksheet and you can enter your adjustment to income on line H.

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