Small business grants

[grantsohtu]

Is local country Grants still taxable income?

[ThomasM125]

@grantsohtu Local grants are taxable on your federal tax return and normally on your local or state tax return.

[Anonymous]

Report it as income under Sch C for your business.

https://ttlc.intuit.com/community/taxes/discussion/1099-g-for-business-grant/00/1863345

[Anonymous]

By Tax expert:   AnnetteB6

"Entering the information reported on the actual Form 1099-G in the personal side of the tax return is just a means to get the information reported in the right place on the tax return.  The data on the form is not transmitted with the return, only the parts transferred to Form 1040 showing the taxable amounts.

Similarly, as long as you have reported the taxable grant income on your Schedule C with your other business income, then that is all that is required.  The IRS already has copies of the actual Form 1099-G and will match the income reported on your return with the income that they know about based on income forms submitted with your business Federal ID number.  The information from the form itself is not required to be included with the tax return.

Thank you for the suggestion that the software be updated, but since the only information truly needed for the return is the amount of the taxable income, it is unlikely that it will be changed."

[dragonfly1000]

Seems no one knows the answer to the question.  We know that PPP funds are not taxable.  We know that some of the grants are taxable.  Specifically, I'm trying to figure out the Restaurant Revitalization Grant which has been forgiven and which is NOT taxable.  Taxable or not is not my question.  I need to enter that money in somewhere, otherwise my Balance Sheet will never balance... but TurboTax doesn't even address it!  

[dragonfly1000]

I think you didn't really read the question.  The question is where to put the grant income in TurboTax.  Of course, if it's taxable, you would put it under Other Income.  But if it's not taxable, how are you going to get your Balance Sheet to balance if you don't enter non-taxable grants somewhere?  But where?  That's the question.

[AliciaP1]

You need to follow the same steps to enter non-taxable grant income to your equity reconciliation as Forgiven PPP funds.  The process differs a little if you're filing an 1120S or a 1065.

To do this on an 1120S you need to follow these steps:

1. Within your tax return, switch to forms mode using the Forms icon at the top right of the screen
2. Click on Form 1120S p3-5
3. Scroll down to the Schedule M-2 and enter "Restaurant Revitalization Grant forgiveness" and the dollar amount on line 3 column d

If you are filing Form 1065 please follow these steps:

1. Within your tax return, switch to forms mode using the Forms icon at the top right of the screen
2. Click on Form 1065 p4-5
3. Enter the amount of your forgiven grant on line 18b

@dragonfly1000