Hi, i do not understand California Venues Grant/Small Business COVID-19 relief grant program. my form is telling me to revisit and I cannot proceed. what do i enter? 0?

[bgunnie]

I seem to be stuck on the Business Section of "here's the income that California handles differently, under the "Business Section". There are que boxes telling me to "revisit" for California Venues Grant and Small Business COVID-19 Relief Grant Program. What do i enter to proceed because Turbo tax is not allowing me to proceed unless I enter something.

[SantinoD · Accepted solution]

California law allows an exclusion from CA gross income for grant allocations received from the Ca Venue grant program.  Since Federal law doesn't have this same exclusion, an adjustment needs to be made on the CA state tax return so you are not taxed on this money received.

As you are going through the interview questions in the CA state tax return, one of the questions will look like the screenshot below. This is where you would enter the amount you received for the CA Venues Grant.

[bgunnie]

Hello there,

Thank you for responding. Where  do i find "the amount you received for the CA Venues Grant"? Is there a form for this? One thing i did receive was a 1099-MISC and it is from the State of California Franchise Tax board. In block 3 "Other Income" there is a specified amount but it does not say if it is CA Venues Grant. Is this what this is? Apparently, there is no way for me to upload a photo to show you. Thank you for whatever assistance you may be able to provide.

BG

[SantinoD]

To clarify, you did receive the California Venues Grant correct?

If yes, then you can request the Form 1099-MISC here: California Venues Grant Program this is the form you will need to report the amount on that line.

[55442]

Hi SantinoD,

Can you provide guidance?  Would it be obvious to the tax payer if they some of their income was from the Ca Venues Grant Program?  I work for a gov office and they receive many grants.  When working on a job that is grant related we have to enter it on our time card as such.  However, there is nothing special for this on the W-2?

Any idea how most people would know if this applies to them? 

[MonikaK1]

Regarding the California Small Business COVID-19 Relief Grant Program:

Grants are available only for businesses and nonprofits with gross annual revenue of $5 million or less (based on the most recent tax return or Form 990, as applicable). Revenue is determined based on the IRS tax form definition of “Gross Sales” (less any returns and allowances) as reported on Line 1.c. on both the 1120 (corporate return) or 1120S (S-Corp return); on Line 3 on IRS Schedule C for single member LLCs and sole proprietorships; on Line 1.c. on Form 1065, for partnerships; on Line 1.c. and Line 2 on Form Schedule F for farming businesses; and Line 12 on Form 990 for non-profits. Schedule E is not eligible.

See here for more information. Individuals may have received a Form 1099 reporting income from the grant program.

See here for information about the California Venues grant program. The California Venues Grant Program (the “Program”) will support eligible independent live events venues that have been affected by COVID-19 in order to support their continued operation. 

Applicants will receive tax information related to the grant proceeds, which will need to be reported on tax returns.