Question

Looking for an answer, posted previously with no answer- is a 1099-MISC for homeowner incentive/ rebate for repairs taxable income?

Forum|Forum|1 year ago
March 11, 2025
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1099-MISC for homeowner incentive/ rebate for repairs- taxable income?

I saw a different post on here saying such a 1099 is not taxable income and should be entered as negative income, but everything else I see says this kind of rebate is taxable. The post here (https://ttlc.intuit.com/community/taxes/discussion/re-is-a-1099-misc-city-rebate-taxable/01/3438924#...) has a TurboTax expert citing to an article which really isn't related. Is there any authority for this being other than taxable income?

FYI, the incentive program by the City of Dallas provided a rebate for part of the cost of a foundation repair. A 1099-MISC, listing the city's payment as "rental income", was issued. The home is a primary residence and not a rental property. Please provide a citation to the law supporting any answer given. Thank you.

Not A Product Question

PatriciaV

Employee

In general, both grants and forgiven loans are taxable income to an individual. However, expenses related to the grant/loan income should be deductible. The steps outlined in the provided post link are appropriate for reporting expenses for income on Form 1099-MISC.

City of Dallas Home Improvement & Preservation Program (HIPP) doesn't provide any information about taxes on the funds they provide. You may wish to contact them directly for clarification. In some cases, the intent of the grantor may imply the grant is tax-free.

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