Yes, it will get listed with your business income on Schedule C. You should receive a form from the county or whoever issued you the funds by the end of January.
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I am in the same situation and received a 1099-G. I cant figure out where to input this in Turbotax. Box 6 has the amount of the grant but in Turbotax it does ask or give you an option to fill in box 6.
Would love some clarification!