Cash For Keys Program: Financial institutions initiating a foreclosure process on a home indicates that it is willing to pay the homeowner a set amount of cash in exchange for the keys to the home. The cash may be based on a percentage of the appraised value of the home or it may simply be a set amount. The financial institutions are making these payments through the new "Cash for Keys Program". The financial institution reports these payments to the Internal Revenue Service on Form 1099-MISC. These payments are reported as other income on Schedule 1 (Form 1040), line 21.
To enter or review the information for Form 1099-MISC, Box 3 Other Income:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Form 1099-MISC in the Federal Quick Q&A Topics menu
- Click New Copy of Form 1099-MISC (Desktop users click Add) to create a new Form 1099-MISC or click Review to review a copy already created
- Click Form 1099-MISC Quick Entry to open the Quick Entry window
- Enter all of the applicable information from your Form 1099-MISC
- Close the Quick Entry window
- On the screen titled What type of income was reported on this Form 1099-MISC?, make the appropriate selection
- If you selected Other non-business income on the previous screen, check the box to confirm that the income is non-business income and is not subject to self-employment taxes.
If you also have federal and/or state tax withholding reported in Box 4 or 16, see Form 1099-MISC - Box 4 or Box 16.