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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 institution reports these payments to the Internal Revenue Service on Form 1099-MISC Miscellaneous Income. These payments are reported as other income on Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8.

To enter or review the information for Form 1099-MISC, Box 3 Other Income:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Form 1099-MISC, click + Add Form 1099-MISC to create a new copy of the form or click Edit to review a form already created, then continue until you reach the screen titled 1099-MISC: Enter information on form.
  3. Click the Switch to Form Entry (optional) link near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC, then click Save & Close.
  4. Select the applicable option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

If you also have federal and/or state tax withholding reported in Box 4 or 15, see Form 1099-MISC - Box 4 or Box 15 Federal or State Withholding.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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