Client received 1099-G box 6 taxable grants who runs the sole proprietor business where should it be entered.

Forum|Forum|4 years ago
February 10, 2022
2 replies
11 views

On Schedule C we have 1099 NEC, 1099 MIsc, 1099-K but do not have any where to write 1099-G ?

ProSeries Professional

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Best answer by qbteachmt

"No line to add 1099-G in Schedule C why not put it on 1040 Schedule 1 line 8z under other income so this way client does not have to pay Selective Employment tax."

I think you mean Self-Employment Tax. Yes, it is subject to SE Tax. It is Business Revenue. It is not "other." That's the wrong way to do this.

1099-G box 6 issued to a business for a grant that does not fall under one of the exemptions is treated as ordinary business income and included the same as any business gross income, without also needing to enter the 1099-G. There are a lot of these grants relative to the covid disaster and the various recovery and stimulus programs, so ask your client to help you identify what their application was for and what grant they were given, to know how to treat it for Fed and State purposes.

R

rcherenson

Level 5

There is a form 1099-G Wks, as it's also used for unemployment payment reporting.

B

bm87_2Author

Level 4

True 1099 G could be for Unemployment or can be State Tax Refunds

While in my client case 1099-G Box 6 is Taxable Grants from the Governers Office of Business & Econom

This money was given due to Covid-19

J

jeffmcpa2010

Level 10

I never use any 1099 input on any business schedule. Just go to Schedule C and record the reportable income on line 1. It all ends up on line 1 anyway, and the detail of where it came from doesn't show up anywhere on anything that gets to the IRS anyway so far as I can see.

B

bm87_2Author

Level 4

True just would like to share my thought since there is No line to add 1099-G in Schedule C why not put it on 1040 Schedule 1 line 8z under other income so this way client does not have to pay Selective Employment tax.

Let me know you views.

qbteachmtAnswer

Level 15

"No line to add 1099-G in Schedule C why not put it on 1040 Schedule 1 line 8z under other income so this way client does not have to pay Selective Employment tax."

I think you mean Self-Employment Tax. Yes, it is subject to SE Tax. It is Business Revenue. It is not "other." That's the wrong way to do this.

1099-G box 6 issued to a business for a grant that does not fall under one of the exemptions is treated as ordinary business income and included the same as any business gross income, without also needing to enter the 1099-G. There are a lot of these grants relative to the covid disaster and the various recovery and stimulus programs, so ask your client to help you identify what their application was for and what grant they were given, to know how to treat it for Fed and State purposes.

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