topic Small business grants in Business & farm

Small business grants

Maikostarr — Fri, 01 Jan 2021 18:06:27 GMT

I received 3 grants totaling around $10,000 for our business to pay for the ongoing expenses during covid(March-December). A report with receipts were required and so was a w9. Where is this to be entered into turbo tax?

Re: Small business grants

abchaney2000 — Sat, 30 Jan 2021 17:09:37 GMT

I am interested in knowing this information too, I got one as well and have no clue where to enter the information on the grant

Re: Small business grants

JamesG1 — Sun, 31 Jan 2021 20:59:47 GMT

You may be talking about the Paycheck Protection Program but there were other programs available in different localities.

Under the Paycheck Protection Program, if you meet the qualifications of the program, some or all of the proceeds "you receive from the loan forgiveness is not part of your gross income and therefore isn’t taxable."

If you are talking about programs other than the Paycheck Protection Program, you would have to investigate the specifics of each program.

However, this is a fast-changing area of tax law. Be sure to check here for the most up to date tax information and changes.

Re: Small business grants

garywutzke — Tue, 23 Feb 2021 21:18:34 GMT

My wife received 3 business grants for corvid relief for her business. Do we list this money as income, and, is it considered taxable income?

Re: Small business grants

cbluvsboboo200412 — Tue, 23 Feb 2021 21:34:48 GMT

The Grant my business received was not from the PPP program. It was a grant to assist my business due to Covid. I have an S-corp. I can't figure out where I list this 1099-misc on Turbo Tax.

Re: Small business grants

JoannaB2 — Tue, 23 Feb 2021 22:02:30 GMT

If you received PPP loan, you can apply for Loan Forgiveness. To qualify for the 1st and 2nd draw of loan forgiveness, at least 60% of the PPP loans were spent towards payroll costs.

Generally, forgiven loan is ordinary income, but Congress exempt forgiven PPP from federal taxation. If your loans were forgiven, then no income to report. You may refer to your state revenue how are they treating forgiven loans; if forgiven loans are taxable income or if expenses not allowed using PPP loans.

SBA offers Paycheck Protection Program loans to businesses with 20 or less employees and sole proprietors only from Wednesday, February 24 through Wednesday, March 10, 2021.

See, sba.gov,, link for more information.

Re: Small business grants

cbluvsboboo200412 — Tue, 23 Feb 2021 22:16:32 GMT

What about a grant my s corp received to help with covid related issues? I received a 1099misc and don't know how or where to file this on turbotax.

Re: Small business grants

npierson7 — Tue, 23 Feb 2021 22:58:44 GMT

If you received 1099-MISC for the income, it means the amount was reported to the IRS as your income and you have to include it in your Form 1120S. You can report is as Other income / Government grant.

Re: Small business grants

cbluvsboboo200412 — Wed, 24 Feb 2021 01:10:52 GMT

thank you

Re: Small business grants

drroyann — Thu, 25 Mar 2021 22:03:33 GMT

I recieved a small business loan and grants to small business due to the pandemic where or how do I include this information

Re: Small business grants

DawnC — Thu, 25 Mar 2021 22:25:47 GMT

The loans and grants are not taxable income on your business returns. Use the funds for business operations and report the expenses as you normally do. You can deduct any interest you have paid on those loans as well. But you do not need to report the income as it is not taxable. @drroyann

Re: Small business grants

tddanna — Fri, 16 Apr 2021 17:25:15 GMT

That is incorrect. Some grants ARE taxable to the business. It would be quite helpful if someone would answer the OP's question ( not a PPP or EIDL Grant)

Re: Small business grants

tddanna — Fri, 16 Apr 2021 17:28:01 GMT

Not talking about PPP or EIDL Grant. Most local grants are taxable to the business. Any guidance on reporting on a 1120-s AND related K-1??

Re: Small business PPP grants and business expense deductions ‌☠️‌

groomingroom_nyc — Sun, 25 Apr 2021 22:18:11 GMT

It took me a while to find . Thought I would share this important tax information regarding PPP . You cannot claim deductions that were paid with loan money. IRS is strict about double dipping.

Re: Small business PPP grants and business expense deductions ‌☠️‌

tddanna — Mon, 26 Apr 2021 05:24:29 GMT

You are posting old law. The law was changed. PPP forgiven loans and EIDL Grants are 100% non-taxable. You can deduct the expenses for which funds were used.

Re: Small business PPP grants and business expense deductions ‌☠️‌

grantsohtu — Mon, 03 May 2021 23:38:41 GMT

Is local country Grants still taxable income?

Re: Small business PPP grants and business expense deductions ‌☠️‌

ThomasM125 — Tue, 04 May 2021 00:37:55 GMT

@grantsohtu Local grants are taxable on your federal tax return and normally on your local or state tax return.

Re: Small business grants

Anonymous — Tue, 11 May 2021 00:57:03 GMT

Report it as income under Sch C for your business.

https://ttlc.intuit.com/community/taxes/discussion/1099-g-for-business-grant/00/1863345

Re: Small business grants

Anonymous — Tue, 11 May 2021 01:02:02 GMT

By Tax expert: AnnetteB6

"Entering the information reported on the actual Form 1099-G in the personal side of the tax return is just a means to get the information reported in the right place on the tax return. The data on the form is not transmitted with the return, only the parts transferred to Form 1040 showing the taxable amounts.

Similarly, as long as you have reported the taxable grant income on your Schedule C with your other business income, then that is all that is required. The IRS already has copies of the actual Form 1099-G and will match the income reported on your return with the income that they know about based on income forms submitted with your business Federal ID number. The information from the form itself is not required to be included with the tax return.

Thank you for the suggestion that the software be updated, but since the only information truly needed for the return is the amount of the taxable income, it is unlikely that it will be changed."

Re: Small business grants

dragonfly1000 — Sat, 12 Mar 2022 23:06:39 GMT

Seems no one knows the answer to the question. We know that PPP funds are not taxable. We know that some of the grants are taxable. Specifically, I'm trying to figure out the Restaurant Revitalization Grant which has been forgiven and which is NOT taxable. Taxable or not is not my question. I need to enter that money in somewhere, otherwise my Balance Sheet will never balance... but TurboTax doesn't even address it!