Entries on Form 1099-G, Box 6 Taxable Grants (this covers certain government payments) are generally reported on IRS Schedule 1 (Form 1040), Line 8. If the item relates to an activity for which you are required to file Schedule C, E, or F or Form 4835, report the taxable amount allocable to the activity on that schedule or form instead.
To make this entry on Schedule 1 (Form 1040), Line 8:
- From within your TaxAct® return (Online or Desktop), click Federal. On smaller devices, click the icon in the upper left-hand corner, then select Federal.
- Click Other Income in the Federal Quick Q&A Topics menu to expand the category, then click Prizes, awards, or other miscellaneous income
- On the screen titled Miscellaneous-Amounts Received, enter the description "Form 1099-G, Box 6" and the amount
If there is a Federal income tax withheld amount in Box 4 of the 1099-G, this amount would need to be entered during the Unemployment compensation portion of the Q&A as there is not a section for this in the other income section:
- Click Other Income in the Federal Quick Q&A Topics menu to expand the category, then click Unemployment Compensation
- Click +Add Form 1099-G Unemployment to create a new copy of the form or Review to review a form already created
- Continue to the screen titled Unemployment Income - 1099-G - Tax Withheld to enter the Federal tax withheld amount