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, go to our Form 1099-MISC - Entering Other Income in Program FAQ.
If you have federal and/or state tax withholding reported in Box 4 or 15 of Form 1099-MISC, go to our Form 1099-MISC - Federal or State Withholding FAQ.
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