We received the RRF grant. If you google this you will find: "California
SB 113 Makes RRF Grants Tax Exempt".
Why is this error in Turbotax? Can this be fixed? Should I leave the entry blank (see turbotax premier screenshot below).Per the California Franchise Tax Board, in their article from February of 2022 What's new for filing 2021 tax returns, California does not conform to the federal provision regarding the tax exempt status of restaurant revitalization grants:
You can read the full article here:
You may not be familiar with SB-113. Gov. Newsom signed it into law on Feb. 9, 2022. It's a bill that conforms California to the federal provision.
SB 113 makes federal grants received through the Restaurant Revitalization Fund exempt from state tax liability. This means that businesses that received these grants will not have to pay California state taxes on the grant amounts.
Maybe someone at Turbotax should read this.
Have the turbotax people who read the California state rules and updates turbotax software to reflect these changes had a chance to review this?