Tax Year 2020: TurboTax Business - Are the Pandemic grants considered income?

[burgyathome]

In addition to the SBA PPP, the business received grants from the city and county. Are these considered income?

[JulieC14]

Yes.  If state and local grants were funded under the CARES Act Coronavirus Relief Fund, then they would be considered income.  On July 6, 2020, the IRS confirmed that the receipt of a government grant by a business generally is not excluded from the business’s gross income under the Code and therefore is taxable.

Here is a link to the IRS.gov website for more information.

[burgyathome]

And one more related question: I received a 1099G for my business from the county resulting from a grant. I don't see anywhere to add income from a 1099G. Do I just lump it in the service receipts item?

[AmyC]

The program has 1099-G entries.

1. In the income section,
2. Other Common Income,
3. Other 1099-G Income
4. Start
5. Yes, I received a 1099-G for government payments
6. Continue

The 1099-G is listing your taxable income from the grant.