We also received a 1099G for a COVID grant from the government in the state of California. We have used the money as part of our operating expenses since we received it. We included the COVID grant as "other income" under Federal taxes. Can we itemize/categorize the operating expenditures as deductions under Federal taxes? In that case, do we still need to include the grant money as a deduction on line 12 of California State 100S?
Thank you so much!
