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Level 2
April 12, 2023

Is a taxable grant subject to SE tax. Funds were used to create a pod cast

  • April 12, 2023
  • 2 replies
  • 20 views
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    2 replies

    Jim-from-Ohio
    Intuit Community Champion
    April 13, 2023

    No. 

    Level 2
    April 13, 2023

    Appreciate the response, perhaps some more facts will clarify:

    Grant funds were disbursed monthly, grantee submitted invoices for reimbursement of labor/hrs spent doing research, interviews, expenses (office space rent, software subscriptions, office supplies). Total labor and expenses equaled total amount of grant.

    Grantee created and maintains ownership of pod cast.

    Grantee is self-employed freelance journalist. Wouldn't total amount received on 1099-G be reported on Sch C, with expenses deducted. Net amount of grant $$ subject to SE tax as well as income tax.

    sjrcpa
    Level 15
    April 13, 2023

    I vote Yes, subject to SE.

    The grant is part of Sch C Gross Income.

    The more I know the more I don’t know.
    IRonMaN
    Level 15
    April 13, 2023

    Based on limited facts - maybe

    Slava Ukraini!