ethics - grant money

[WITAXLADY]

Volunteer worked 6 months and the organization got a grant and split it up amongst the volunteers.  Taxpayer forgot to claim it in 2021- no 1099, just her check stub.

Amend? - Claim as other income?

Only expenses would be miles..

Thank you,

darlene

[DANRVAN]

1 hour ago, WITAXLADY said:

Amend? - Claim as other income?

Most likely, although it could go several different directions depending on facts and circumstance as well as dollar amount.

I would be curious as to how the org. reported the distribution to the volunteers; sounds like more than a matter of reimbursement of expenses.

1 hour ago, WITAXLADY said:

Only expenses would be miles..

I think that would only apply if put on schedule C.

Without any further information I would go with other income on 1040X.

 

[mcb39]

Many Government and Public Assistance grants are not taxable.  See Quickfinders; Page 4-5.  Also included are some Volunteer grants.  If there was no 1099; I would certainly try to find out if it is indeed taxable.

[DANRVAN]

8 hours ago, mcb39 said:

Many Government and Public Assistance grants are not taxable.  See Quickfinders; Page 4-5.  Also included are some Volunteer grants. 

As I understand OP, grant was made to a charitable org which then divided it up among the volunteers.

While grant was not taxable to the org, I can’t see where the distribution of the grant to volunteers would be non-taxable if it was above and beyond a reimbursement.  The IRS rules are strict in such matters.

I would be curious in how the org. classified the distribution to the volunteers on form 990.

[DANRVAN]

14 hours ago, mcb39 said:

Also included are some Volunteer grants.

I believe a "volunteer grant" is a donation from a company a volunteer is employed with - to a charity the employee volunteers for.  The org. uses it for it's charitable purposes;  it is not disbursed to the volunteer as in the case of OP.