Taxpayer, using his LLC EIN, applied to the Wisconsin Economic Development Corp for a grant and received $2,500.  The $2,500 was reported to the taxpayers LLC on form 1099-G in box 6 entitled taxable grants.  ProSeries links box 6 (taxable grants) of Form 1099-G to Schedule 1, Additional income, line 8 Other Income bypassing Schedule C and thus avoiding Self Employment Taxes.  Interestingly on line 8 of form 1099-G ProSeries asks if the amount reported in box 2 (state income tax refunds, credits or offsets) applies to income from a business and if so links box 2 to line 6 (other income) of Schedule C thus subjecting it to Self Employment Taxes.  

Question - Are taxable grants reported in box 6 of form 1099-G exempt from Self Employment Taxes or does Intuit need to fix their software and link box 6 to Schedule C line 6 (other income)?

Thanks

MRH