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Where do I subtract the income that is reported on the 1099-MISC for a rebate that is not taxable income ?

Forum|Forum|7 years ago
June 6, 2019
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I received a rebate (and 1099-MISC) from a Municipal Water District for the removal of turf and installation of drought tolerant landscape. I spoke with an agent from the IRS law department who researched the issue and told me that the rebate is not taxable income.
I entered information from the 1099-MISC. How do I subtract the amount of that income and add a statement referring to the information that I received from the IRS agent? I have his IRS ID number.

TurboTax Home & Biz Windows

Best answer by DianeW777

You can show a negative number in Line 21 with the caption, “Rebate Income Adj.” The negative number on Line 21 will adjust the income of the reported rebate.

You can enter a negative income adjustment with the following menu path:

Federal Taxes

Wages & Income

Less Common Income (image attached)

Miscellaneous Income

Start

Other Reportable Income

Start

Other Taxable Income

Description = “Rebate Income Adj”

Amount = -$xxx

TurboTax will transfer this to your Form 1040, Line 21, Page 1.

D

DianeW777Answer

You can show a negative number in Line 21 with the caption, “Rebate Income Adj.” The negative number on Line 21 will adjust the income of the reported rebate.

You can enter a negative income adjustment with the following menu path:

Federal Taxes

Wages & Income

Less Common Income (image attached)

Miscellaneous Income

Start

Other Reportable Income

Start

Other Taxable Income

Description = “Rebate Income Adj”

Amount = -$xxx

TurboTax will transfer this to your Form 1040, Line 21, Page 1.

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6

6760stan

where can I find menu path you are talking about? I don't see where "federal taxes" is. Is it under one of those file, edit, view, tools, online, help tabs? FYI, I am using home and Biz edition if that matters.