1099G Box 6 taxable grant. Can't get amount to flow to Sch C.

Forum|Forum|5 years ago
April 1, 2021
16 replies
85 views

I have a client who is a hairdresser. She received a COVID grant which is reported on Box 6 on a 1099G. She has a Sch C and I can't get the $12,000 to flow to the Sch C. It goes to Sch 1 line 8 other income. Any suggestions? Intuit hasn't provided any guidance.

ProSeries Basic

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J

jeffmcpa2010

Level 10

Delete your 1099G input and just enter the income direct on the Schedule C.

Other than Unemployment, State Tax Refunds, 1099-Misc other income, I rarely (never) use any 1099 inputs. I just put the total amount of Income received on the appropriate line on the C, E F or whatever form applies.

BobKamman

Level 15

How did you determine that she is in the trade or business of receiving government grants?

qbteachmt

Level 15

The CARES business grants are taxable income through the Feds except for a few specific purposes; the State might not tax it, though.

Don't yell at us; we're volunteers

BobKamman

Level 15

@qbteachmt

I don't disagree that it's taxable. I wonder if it goes on Sch C and SE. And maybe on Sch EIC, if the taxpayer wants it to generate another $5,000 credit. Others have asked questions about where to report these items, and I may have missed the answers.

B

bd3

Level 3

I agree that even though ProSeries 1099G worksheet provides a box to link the Box 6 Grant to the Schedule C it does not flow through.to that Form. The 1099G recipient is the business and its FEIN and not the taxpayer social security number. It is useless to show the true recipient on the worksheet because that itself generates an error message.

J

jeffmcpa2010

Level 10

If you do not have a 1099 in the taxpayers name and SSN why would you even try entering it.

Just report the income directly on the schedule C as other income - put a description in if you want to. But there is no need to try to input a 1099 NOT IN THE TAXPAYER'S NAME ( or just about any other time either). Report the income on the correct form and move on.

You may wish to let your client know they are giving out the wrong information to the preparer of the 1099, and be prepared for an IRS notice to the actual recipient or backup withholding to possibly show up in the future if it is an ongoing payment stream.

B

bd3

Level 3

The Schedule C is a single member LLC with its own EIN. The 1099G Box 6 was to the LLC. The 1099G worksheet provides spaces for all of this information it just does not flow to the Schedule C with the link.

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