How to report EIDL advance/grant on 1120 C-Corp?

[trungson]

Hello,

We're a small C-Corp with 2 people, received $2000 from EIDL last year, which is tax-exempt. Corp's asset is a bit more than 250k so we need to include M1 and we use 1120. If it's not income then how do we record/report the $2000 in TurboTax and in QuickBook? Thanks

[JamesG1]

The Consolidated Appropriations Act of 2021 provides that taxable income does not include EIDL grants or certain loan repayment assistance.  See here.

Funds from an EIDL Advance are not reported as taxable business income.  There may be a reconciliation issue if you report your balance sheet on your tax return. You may need to make reconciling entries on Schedule M-1 and M-2 in TurboTax and on your corporate income tax return.

[trungson]

Thanks for the info. I excluded the EIDL from taxable income section in TT and manually edited M1 line 7 with the EIDL amount to reconcile the income per book vs. return. California State in TurboTax did ask specifically for EIDL received and add it back since it's taxable on California tax return.

[lianxin]

Thank you - I have the same question. Can you please advice how to perform the M-1 L10 and M-1 L23 reconciliation on TurboTax?

[supratt]

Looking for help on this too.