Business received - Non-taxable Grant Revenue - 1040 Schedule C

Forum|Forum|5 years ago
May 13, 2021
2 replies
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Business received - Non-taxable Grant Revenue - 1040 Schedule C - How do you enter? Business is in Maryland.

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T

TaxGuyBill

Level 15

First double check that it is not taxable, because there are not a lot of grants that are not taxable.

If it is not taxable, it does not go on Schedule C or anywhere else on the Federal tax return. If it is not taxable to the state, I wouldn't think it would be entered on the state either.

qbteachmt

Level 15

"Business received" is the place to start. Research the specific grant to find the specific code that excludes that specific grant from Fed tax; then, do the same for State. A lot of people are confused about the CARES grants; these grants flowing to businesses are Fed taxable unless you find the specific exclusion. Or, this is EIDL grant? What was the purpose of the specific grant?

Links:

https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions

https://financialadvisors.com/blog/blogdetails/covid-19-related-government-grants-taxable-or-not

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