ThomasM125
Expert Alumni

Deductions & credits

Code section 139  allows a business to make non-taxable disbursements to employees affected by a disaster or in your case, by the Covid-19 pandemic.

 

You would simply enter the expenses as Other Expenses on your business income tax return and keep documentation supporting their qualification.

 

You can learn more about this here:

 

https://www.law.cornell.edu/uscode/text/26/139

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