topic covid relief payment to business in Business & farm

covid relief payment to business

fillini00 — Wed, 24 Feb 2021 06:51:36 GMT

Do we enter the automatic payment from the government to our s-corp business for COVID relief and if so, how do we label it as income? Thank you.

Re: covid relief payment to business

MinhT1 — Wed, 24 Feb 2021 16:11:17 GMT

The COVID relief payments which are loans such as the Economic Injury Disaster Loan (EIDL) and the Payroll Protection Program (PPP) loan are not taxable and are included in income.

They are listed on the balance sheet as liabilities on the balance sheet (until they are forgiven). The loan forgiveness is not taxable either.

Re: covid relief payment to business

fillini00 — Fri, 26 Feb 2021 09:04:59 GMT

thank you for the reply. To clarify: this wasn't a loan, it was a provider relief payment.

Re: covid relief payment to business

AmyC — Sat, 27 Feb 2021 02:15:18 GMT

That does make a difference. Yes, the provider relief payment is taxable according to Frequently Asked Questions about Taxation of Provider Relief. The reporting requirements and audit proofing yourself are available here. There is a difference based on the amount you received.