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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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My parents had a house fire and lived with me until the

Customer Question

My parents had a house fire and lived with me until the rebuild. Their insurance company paid a monthly amount to offset my costs. They sent me a 1099-misc and put the total amount paid to me in box 6 (medical and health care payments) not sure how to file out schedule c
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: nothing else.
Submitted: 2 months ago.
Category: Tax
Expert:  Lev replied 2 months ago.

I assume these payments should be reported as rental expenses - based on your information...

And a such - you would report that amount on schedule E - not schedule C.

Expert:  Lev replied 2 months ago.

You might want to contact the insurance company and ask for correction.

But regardless how payments are reported - the IRS still expect to see that amount on your tax return.

Another issue what deductions you may claim to offset that income.

I suggest to verify in IRS publication 527 for explanations and examples

https://www.irs.gov/pub/irs-pdf/p527.pdf