In addition to the SBA PPP, the business received grants from the city and county. Are these considered income?
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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.
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?
The program has 1099-G entries.
The 1099-G is listing your taxable income from the grant.
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