1099-G WITH BOX 6 MARKED. RECEIVED FROM BWC. PROGRAM PUTS TO OTHER INCOME BUT THIS IS A SCH C SOLE PROP. SHOULD IT GO ON THE SCHEDULE C?

[CPTAXMAN]

1099-G WITH BOX 6 MARKED. RECEIVED FROM BWC. PROGRAM PUTS TO OTHER INCOME BUT THIS IS A SCH C SOLE PROP. SHOULD IT GO ON THE SCHEDULE C?

[TAXOH]

I put mine as other income because it wasn't earned income by the business and I didn't think self employment taxes should be paid on it.

[qbteachmt]

What is "BWC?"

If that is a County or State or Agency grant to the business, it goes on the Sched C.

https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions

[abctax55]

"PROGRAM PUTS TO OTHER INCOME ..... "

The "program" puts it where YOU tell it to.

F 1099-G is often a state income tax refund; is that what you have ?

BTW - all CAPS is considered rude on the internet....

[TAXOH]

BWC is Bureau of Workers Compensation.

[qbteachmt]

"BWC is Bureau of Workers Compensation"

Then this would be a claim from some employment?

The taxpayer needs to identify what they applied to get, in other words. Right now, a lot of people got "cares grants" that are taxable, because they applied for their business and it was supposedly to be spent on business needs as impacted by covid, excluding shuttered venues.

[abctax55]

@TAXOH - thanks, Beth.   

I just love the fact that posters "ass-u-me" that we are all from the same state, and know every single acronym in the country.

[TAXOH]

@abctax55 You're welcome.  I knew what they were talking about because I received a check also.  

[TAXOH]

It was a dividend check issued to employers that were current on their workers compensation premiums.  :Employer's didn't need to apply for anything, it was sent automatically due to Covid and keeping businesses open and people employed.

[qbteachmt]

We call it "State Fund" and a return of costs would be contra to the employer's expense.

It's business related.

[qbteachmt]

Oh, wait: "due to Covid and keeping businesses open and people employed."

That's what I first linked. Agency-related from cares funds given to States to disperse to businesses is also business-related and is business income, not other.

Is it a Grant, a Refund of overpayment (actuarially determined), or something else? Because I've had this open all year:

https://commerce.mt.gov/Montana-Coronavirus-Relief/Awarded-Grants

Watching grants.

[TAXOH]

It's not a return of costs.  My check was 372% greater than any premiums I paid.  They made good investments and kept costs down and sent out over 5 billion dollars.

[qbteachmt]

As I noted, and now have done OH research, there are, for example:

"The new deadline gives such facilities an extra three months to apply for reimbursement from the COVID-19 Indoor Air Quality Assistance Program, a program funded by $28 million in federal CARES (Coronavirus, Aid, Relief, and Economic Security) Act dollars and administered by BWC at Governor Mike DeWine’s request."

"and sent out over 5 billion dollars."

That would be this one, then:

https://info.bwc.ohio.gov/wps/portal/gov/bwc/news-and-events/news/5-billion-on-its-way-to-ohio-emplo...

"The dividend follows a $1.54 billion dividend in April and one for $1.3 billion in October, both made possible by BWC’s healthy investment returns on employer premiums, a declining number of injury claims, and prudent fiscal management. The latest dividend is nearly four times the premium employers paid in policy year 2019."

Point being, who issued a 1099-G doesn't necessarily define how it is treated.

[TAXOH]

I didn't need any research done since I knew exactly what it was and what it was for.

[qbteachmt]

"I knew exactly what it was"

I didn't even know what "BWC" is. Are we not allowed to ask and learn as well as contribute so that others can learn?

[TAXOH]

And I explained what BWC was.  When I said "I knew exactly what it was for" I was talking about I knew what the payment was for because I received one and they sent a letter explaining what it was and why you were getting it  I don't have a problem with people asking and/or learning.  I was just saying that I didn't need any research done for me, if that's who you were researching for.

[qbteachmt]

I'm glad you knew what it was, even though on this forum, we often mind-read to figure out details, so our first assumption isn't always the right assumption, and that's why a person might be asked for more details. It appears BWC is also handling Cares grants, as I first noted. If that isn't of interest to you, that's fine. Sorry if you find this intrusive.

[TAXOH]

Thanks cause I'm new to this forum and didn't know that.  I am unclear about what details you asked for and weren't given.  I don't find it intrusive at all.  You can respond to this and have the last word because I have clients to take care of.

[qbteachmt]

"I am unclear about what details you asked for and weren't given."

I wasn't the only one trying to mind-read; you responded to this:

"I just love the fact that posters "ass-u-me" that we are all from the same state, and know every single acronym in the country."

"Thanks cause I'm new to this forum"

I didn't notice this; I thought you were part of the forum before the migration here?

"You can respond to this and have the last word because I have clients to take care of."

I don't even know what that means. I've been dealing with clients all day, around updating two laptops on Windows 20H2, as well. Is this some competition for who is busiest, or who is most exhausted or?

Again, I apologize if I stepped into your turf. There is not even anything explicit in the topic's title, or the initial question, or any of the responses, that explains this is Ohio. That is only surmised by noticing your username in response. I guess the mid-reading helped confirm that your BWC and the OP's "BWC" are the same BWC.

The rest of us are just audience.