Thanks, I got it entered without having to say I'm a small business; HOWEVER, (and I could be wrong) I believe this income is indeed taxable. The federal statute you referenced is regarding repayment for losses incurred as a result of a "qualified disaster". Are you sure this payment applies?
I recall the letter that accompanied the payment from the state, and it said that it was taxable, and as a result of that taxable status, the state included a larger check than what was promised. It explained that extra money was intended to offset the cost of the federal tax. I dont have the letter anymore but it was definitely telling us the money was taxable.
What do you think?
