I am using Wave for my personal accounting and for my husband's business separately. His business income is recorded on Schedule C of Form 1040 as a sole proprietorship. I use TurboTax for my tax software.
We received payments under the Federal Coronavirus Relief Law (CARES Act), and I am trying to determine how it will affect my taxes.
I know that I will not owe income taxes on the cash and do not need to include it as part of your taxable income on my return. I have read that the payment is technically being structured as an advance on a temporary, refundable tax credit, but I don’t really understand the impact of that. Does anyone know exactly what the accounting entry for this would be? And what lines it will actually hit on my return? Will it be like the tax credit I get under the ACA?
