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burgyathome
Level 3

TurboTax Business - Are the Pandemic grants considered income?

In addition to the SBA PPP, the business received grants from the city and county. Are these considered income?
3 Replies
JulieC14
Expert Alumni

TurboTax Business - Are the Pandemic grants considered income?

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.

 

 

 

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burgyathome
Level 3

TurboTax Business - Are the Pandemic grants considered income?

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
Expert Alumni

TurboTax Business - Are the Pandemic grants considered income?

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.

 

 

 

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