The CARES Act funding is taxable income unless otherwise carved out under an existing exclusion, such as if the provider is a 501(c) nonprofit.
The Internal Revenue Service has confirmed that Provider Relief Fund payments made available through the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) cannot be excluded from taxation under a disaster relief exemption. Therefore, the payments do constitute gross taxable income, unless otherwise carved out under an existing exclusion, such as if the provider is a 501(c) nonprofit.
Stimulus payments, however, are not taxable.
