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1099-G small business covid relief grant

Forum|Forum|3 years ago
October 14, 2022
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Taxpayer received form 1099-G from Governor's Office of Business and Econ. Box 6 Taxable Grants has $15,000. It is a small business covid relief grant. Lacerte has a entry on screen 14.2 and you can enter -1 for California so it is taxed federal but not CA. Is this the proper entry screen or should the income go on schedule C subject to self employment tax, etc?

Lacerte Tax

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Best answer by qbteachmt

Here's the Help article:

https://proconnect.intuit.com/support/en-us/help-article/state-taxes/enter-ca-stimulus-ppp-grants-lacerte/L0w9ua2Ea_US_en_US

Level 15

It's a business grant, which makes it business income, the same as if they had done that business.

This is the reference I use:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

Don't yell at us; we're volunteers

qbteachmtAnswer

Level 15

Here's the Help article:

https://proconnect.intuit.com/support/en-us/help-article/state-taxes/enter-ca-stimulus-ppp-grants-lacerte/L0w9ua2Ea_US_en_US

Don't yell at us; we're volunteers