1. Support
  2. TaxSlayer ProWeb
  3. Where Do I Enter...In TaxSlayer ProWeb

ProWeb: 1099-G Box 6, Taxable Grants

A taxpayer may received a taxable grant from a government agency such as the Small Business Administration (SBA) or from a nonprofit organization. The grant doesn't require repayment since it's not a loan, but the taxpayer does need to account for how the grant was used and does need to report it on their annual tax return.

If the grant relates to activity being reported on Schedules C, E, or F, or Form 4835, then it will be reported on the form to which it relates, otherwise it is reported as Other Income on Schedule 1.

In ProWeb, you will need to make two or three entries related to a taxable grant:

  • Enter the 1099-G indicating the Box 6 amount. This amount doesn't carry to any federal form or schedule but is used for state tax returns as needed.
  • Enter the amount in the appropriate form or schedule to which the income belongs.
  • Enter a preparer note explaining how it was handled if not treated as other income.

Step 1: Enter the 1099-G

From the Federal Section of the tax return (Form 1040) select:

  • Income
  • Form 1099-G Box 1
  • Add or Edit a 1099-G - Enter the payer information.
  • Taxable Grants - Enter the amount in Box 6.
  • Enter state information if it's on the form.

Step 2: Enter the grant amount where it belongs in the return

Enter the grant income in the form or schedule where it belongs.

Schedule C

If the grant relates to the taxpayer's business activity normally reported on Schedule C, include the grant on that schedule as Other Income. From the Federal Section of the tax return (Form 1040) select:

  • Income
  • Schedule C, Profits or Loss from Business
  • Income
  • Other Income

Schedule E

A landlord who receives rental payments from a nonprofit assisting tenants treats those payments as rental income. To enter these receipts in Schedule E, from the Federal Section of the tax return (Form 1040) select:

  • Income
  • Schedule E
  • Rent and Royalty Basic Information
  • Rental Payments Received - Include the total grants with other rental payments.

Schedule F

If the grant relates to the taxpayer's business activity normally reported on Schedule F, include the grant on that schedule as Other Income. From the Federal Section of the tax return (Form 1040) select:

  • Income
  • Schedule F
  • Income
  • Other Income

Form 4835

A grant from a government program or nonprofit for the rental of farmland is reported on Form 4835. From the Federal Section of the tax return (Form 1040) select:

  • Income
  • Other Income
  • Farm Rental Income and Expenses
  • Other income

Other Income

If the grant is unrelated to a taxpayer's business, enter it as other income. From the Federal Section of the tax return (Form 1040) select:

  • Income
  • Other Income
  • Other Income Not Reported Elsewhere
  • Other Income Description - Select Other Income
  • Amount of other income - Enter the amount of the grant.

Step 3: Enter a Preparer Note

From the Federal Section of the tax return (Form 1040) select:

  • Miscellaneous Forms
  • Explanations
  • Preparer Notes - Enter a title, e.g., Form 1099-G taxable grants, and a note explaining how it is being handled in the return.

Note: This articles provides navigational guidance for entering taxable grants in TaxSlayer ProWeb. It is not intended as tax advice.