Question

Can I report income from a 1099-MISC under a different classification?

Forum|Forum|4 years ago
February 3, 2022
1 reply
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A renter of mine received Federal COVID relief money under the Colorado Emergency Rental Assistance Program. The Payer, a third party, insists this money should be classified under box 3, Other Income, because it includes some utilities and late fees. This prevents me from associating it with my property under the Schedule E. Can I just report the income under Box 1, Rents, even though it was reported differently?

TurboTax Premier Online

DaveF1006

No. You cannot change the code on the 1099-MISC because a copy of this was sent to the IRS. What I suggest doing is to enter this as Cash, checks, Venmo/Paypal, and/or Form 1099-K.

If at a future if the IRS makes an inquiry about the missing 1099-MISC from your return, inform them that you reported the income as rental income associated with your rental property because the original 1099-MISC was miscoded and that the issuer refused to issue a corrected 1099-MISC (if this is the case).

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