Our farm business got a 1099-G with a box 6 taxable grant. I've found answers about how to enter a 1099-G in the personal income section, but when I try to enter it as income for the farm business I have two problems. First, the software is defaulting to an individual name and SSN for the payee and I its not letting me change it in either EasyStep or directly in the Form. Second, in EasyStep there is no option for box 6 and when I put an amount in box 6 directly on the Form it doesn't get picked up as income when I go back to EasyStep.
June 4, 2019 5:44 PM last updated June 04, 2019 5:44 PM Connect with an expert
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1 Best answerAccording to the instructions for Form 1099-G, box 6, since the grant relates to an activity for which you are required to file Schedule F, do not enter the amount on the 1099-G entry form. Instead, report the taxable amount as income on the applicable Schedule F.
You can enter this income using these steps:
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According to the instructions for Form 1099-G, box 6, since the grant relates to an activity for which you are required to file Schedule F, do not enter the amount on the 1099-G entry form. Instead, report the taxable amount as income on the applicable Schedule F.
You can enter this income using these steps:
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**Mark the post that answers your question by clicking on "Mark as Best Answer"
I had the same problem with the Farm Rental Form 4835. When you try to enter 1099G data it doesn't let you enter box 6. If you follow the procedure above to enter it in Other Income, it says "Other Income not reported on 1099Misc or 1099G." So, it is not appropriate to enter the data from box 6 in Other Income. Do you just go ahead and put it there anyway?
March 17, 2020 7:49 PMThe fact your farm may be registred as an LLC is irrelevant. Farm income is reported on SCH F. As you start the SCH F section of the program, you ***MUST*** select the option to indicate you have income reported on a 1099-MISC or 1099-G. Then press on through the program. Screen shot below.
March 18, 2020 7:47 AMHaving the same problems as other users here. after going through the procedure to add a 1099-G to the Schedule F, there is no place to add taxable grant income. Your choices are Boxes 2, 7, or 9. Now what?
February 9, 2022 5:52 AM Employee Tax ExpertTo add a 1099-G taxable grant shown in Box 6, please follow the instructions below:
[Edited 2/9/22 l 6:30PST]
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Finally, finally, finally. I think I understand this. All of us TT users think that we are entering 1099 data for the IRS when, in fact, we are entering it so that TT can enter the income on to the forms. If we were doing our taxes on the paper forms, we wouldn't do 1099 data entry. We would simply take the income from the form, whether it be listed as a "box 6, taxable grant" or "box 7, agricultural payment" and enter it into the correct form whether it be "other income", Schedule C or F. This year, we received 1099-G forms from the USDA with income in box 6 in one and box 7 on the other, so in our case, all I really needed to do was put this income on Schedule F under taxable income. I could put it under "other income" and avoid SE tax, but since this income made our farm show a profit, we gained the ability to include healthcare as a deduction and picked up qualified business deductions. Placing it on the Schedule F (or C in some cases) also provides the ability to deduct associated costs to complete the practice. Putting it down under "other income" does not give you the ability to do so. Maybe if your farm or business was very profitable, you would include the income under "other income" to avoid the SE tax, but it really benefited us to not do so this year. Thanks for all of your help. This has been an issue with me for the last 3 years. but now I think I have it and truly understand what and why it is this way!
