EIDL for Self Employed

[momona]

Uber driver received $1,000 in EIDL advance which he doesn't have to repay. It is my understanding that this is reportable. I reported the $1,000 on his Schedule C because if he wasn't self-employed, he wouldn't qualify the funds. However, it is now subject to SE tax. Again, I have not found anything about this. I would appreciate your guidance on this.

Stay safe and stay warm!

[AnotherPreparer]

Not taxable according to general welfare exception- its from a govt fund, based on need, not a payment for service. I pulled this info from google searching. Maybe someone else knows more.

[TaxGuyBill]

While the forgiven EID loan would usually be taxable, the law that passed in December made it non-taxable for Federal purposes, just like the PPP.

State laws vary, so it might be taxable in the State, or maybe not. Some states are even passing laws NOW to change the way the state taxes it, so be sure you check your State rules very closely with VERY up-to-date information.