I need to make a 1099 misc other income from a county for covid relief non taxable- where can I make a change

Forum|Forum|5 years ago
March 27, 2021
8 replies
52 views

Client received covid relief from County. County sent out 1099 misc form with other income box checked. This seemed to be the wrong form. They have no idea. Now I need to adjust the income to non taxable. Where can make an adjustment to other income from a 1099 misc?

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PamC

Level 7

Was this a grant made to an individual or business?

P

PamC

Level 7

Most Covid-related grants from state and local governments made to businesses ARE taxable.

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ragreenAuthor

Level 2

Said it was not business. That is why I am under the impression it is not taxable. He received 2 grants for $1,500 each. Federal money given to counties.

qbteachmt

Level 15

"Now I need to adjust the income to non taxable. Where can make an adjustment to other income from a 1099 misc?"

Is the grant for something specifically excluded for tax purposes per some law or regulation?

You don't change the form type, and the 1099-Misc or 1099-G is not what controls if that is taxable or not. That doesn't make this an error, either. You would need to understand the grant, what it was applied for (the qualifying need) and what it was meant to do.

Don't yell at us; we're volunteers

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ragreenAuthor

Level 2

Seems to be disagreement as to if it is taxable or not. County had no clue. They actually called H&R Block. And received 2 different answers. They did not know which form to send out to.

It was Federal money given to the County.

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