As @DaveF1006 says above -
Yes, it is taxable but since it is reported as Self-employed income, you may deduct expenses associated with the grant. To report in Turbo Tax Home and Business Desktop:
- Open Turbo Tax
- Select the Business tab
- Choose what you work on.
- Go to Business income and Expenses>profit and loss from Business>start
- You will need to set up a business profile if you haven't done so already.
- Once you finish the profile, you will reach a screen that says Your XXX Business.
- Next select Business Income>start
- Next will be several categories of income. For the Grant income, you will want to select General Income
- Under the description, you will put CA Relief Grant for small Businesses and the amount.
When you get to the California return there will be a question that will allow you to remove the grant from your taxable income.
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