1099-NEC for Foster Care

Forum|Forum|4 years ago
February 16, 2022
4 replies
16 views

Client received a 1099-nec for providing foster care to a disabled adult. I understand this should not be taxable (Section 131A) How and where.should I enter it on the return.

ProSeries Basic

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Sch C is where IRS will be looking for the income, seems like the best place to wash it out.

Just-Lisa-Now-

Intuit Community Champion

I put them on Sch C then back it out as Other expenses with the description

Title 26 U.S. Code § 131 - Certain foster care payments

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

Carol-LAuthor

Level 3

Thanks Lisa,

I tried to include the Income on Sched 1, Part I. Ln 8z Other Income (that flowed just fine from the 1099-NEC.

I wanted to show the adjustment in Part II, Ln 24z Other Adjustments. In Pro Series Basic, I could only enter an amount Ln 24z "Other Adjustments" by Override. I expect that may have caused an error when trying to e-file.

Schedule C seems like a good way to get around it. I don't dare ignore the 1099-NEC, sure cause an issue.

Just-Lisa-Now-

Answer

Intuit Community Champion

Sch C is where IRS will be looking for the income, seems like the best place to wash it out.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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