1099-MISC from energy company for net metering

[sali108bwt]

My client received a 1099-MISC form $5800 from the power company for energy sold back to the power company. Is this taxable income treated as other income or is it considered a discount on the electrical bill? Where should it be reported since a 1099 was issued? Thanks

[taxmom34]

the money was reported on 1099misc, what box?

[FEDUKE404]

Income likely

Sounds seriously like income to me, hence the Form 1099-MISC.

Curious: What kind of power bills does this person have to even consider a $5,800 "discount" ??

FE

[taxea]

Review the client's net metering contract with the PV company

[sali108bwt]

the money was reported on 1099misc, what box?

Box 7 nonemployee compensation

[taxmom34]

looks like power company considers client as an employee and paid wages of $5800 subject to SE. you probably need more info from client.

[Roland Slugg]

looks like power company considers client as an employee.

Interesting. Line 7 of form 1099-MISC says "Nonemployee compensation."

$5,800 represents a pretty serious electricity generation and sell-back, and not the level you typically see for individuals who sell the excess wattage from their residential solar system. Does your client own a windmill or two? A solar farm? A geothermal vent?

After spending a couple minutes looking for something on point ... a feeble effort, not a very serious one ... I found nothing specific. I do know, however, that amounts paid to owners of a working interest in an oil or gas investment are reported in Box 7, and this may be similar.