1099-G received for a non-education government grant -- where to file?

clintp1969
clintp1969 Member Posts: 2 Newcomer
edited January 31 in Income

I received a 1099-G from the state in 2023, and have received a 1099-G. This is a relocation grant.

On the 1099-G the income appears in Box 6 "Taxable Grants". All other boxes are zero.

How do I report this in TaxFreeUSA? It's not an educational grant, it's not unemployment, and not a taxable state refund.

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Best Answer

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 258
    Answer ✓

    Hi Clint,

    Thank you for the information. Vermont passed legislation several years to incentivize and attract people to move to Vermont, even if they were going to work remotely. The grants can cover a certain number of costs, like moving, closing costs, etc.

    The grants are taxable for both federal and state purposes.

    The best way to enter this is to go to the Other Income page and enter it as Miscellaneous Income. Enter a description, like "VT RELOCATION GRANT" with the amount. For more details:

    https://accd.vermont.gov/content/new-remote-worker-grant-program-guidelines

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