Taxable Grants and/or Agricultural Payments (Box 6)
Entries on Form 1099-G Certain Government Payments, Box 6 (this covers certain government payments) are generally reported on IRS Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8. If the item relates to an activity for which you are required to file Schedule C, Schedule E, Schedule F, or Form 4835, you need to report the taxable amount allocable to the activity on that schedule or form instead.
To report Form 1099-G Box 6 on Schedule 1, Line 8 in the TaxAct program:
- From within the return, click Federal.
- On smaller devices, click in the upper left-hand corner, then choose Federal.
- Click the Other Income drop down, then click Prizes, awards or other miscellaneous income.
- On the screen titled Miscellaneous - Amounts Received, click the field below Description and type Form 1099-G, Box 6, then click the field below Amount and type the amount.
Agricultural Payments (Box 7)
Most government program payments are reported on Schedule F, Part I. This includes government payments, conservation program payments, indemnity payments for livestock killed by a natural disaster, cost-sharing payments, and forage disaster payments (cash, materials, services, etc.).
If a government payment is paid and then you later return all or part of the payment (such as a check returned, or an offset loan), the full amount is still reported on Schedule F, Part I. You would then take a deduction for the returned amount on Schedule F, Part II for the year in which the repayment occurs.
To access Schedule F data entry, go to Federal > Business Income > Farming income or loss.