Form 1099-G, is provided to a taxpayer that received certain payments from federal, state, or local governments. These payments are entered on the individual's tax return and may be considered taxable income.
What if my 1099-G has taxable grants reported on it?
Box 6 of Form 1099-G lists taxable grants of $600 or more. This includes grants for subsidized energy financing, projects that produce or conserve energy, and grants approved by an Indian tribal government.
Taxable grants are reported as Other Income on 1040s unless the grants relate to an activity in which the taxpayer must file a Schedule C, E, F, or Form 4835.
Where do I enter my taxable grants?
To report your taxable grants not related to Schedule C, E, F, or Form 4835, please follow the steps listed below.
- Select Federal from the navigation bar on the left-hand side of the page
- Select Income from the same navigation bar
- Choose "Less Common Income" from the bottom on the Income page
- Select Other Compensation
- Choose "Scholarships and Grants" from the Other Compensation page
- Enter your amount of taxable grants in the box labeled "(your name)'s scholarships and grants"
- Press continue to save the taxable grants to your tax return
Once your taxable grants are reported on your 1099-G, follow the steps below to report them.
If your taxable grants are related to Schedule C, E, F, or Form 4835, include them as income on the corresponding Form or Schedule.