Question

Unearned income

Forum|Forum|3 years ago
October 3, 2022
2 replies
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The bank sent me a refund for a closed safety deposit box. They sent four checks instead of one and said they are honoring the other three checks as well. How do I enter the unearned income in Turbo Tax Deluxe 2021?

Tax Advice

D

drsluggo

Unless you took the safe deposit box fee as a deduction/business expense you do not have to declare the refunded amount as income.

rjs

Employee

You can report it as "other income" on Schedule 1 line 8z with a description that you enter. Here's how to enter it in TurboTax.

In the Search box in TurboTax type "lawsuit settlement" (without the quotes), then click the link that says "Jump to lawsuit settlement." I know that's not what the income was from, but it's the only search term I could find that gets you to the right place.
The first screen asks, "Any Other Taxable Income?" Click Yes.
On the next screen, "Other Taxable Income," enter a short description such as "Excess refund" and enter the amount. Click Continue.
On the next screen click Done.
You will get a couple more screens with unrelated questions. If they don't apply to you, just answer No and click Continue.