State and Federal Exempt Income

[Snaggletooth]

All sorts of exempt income, and some of it may not be.

There are two broad types of benefits from Uncle Sam due to the virus - PPP Loans and EIDL Grants. There are also various state programs - Alabama, Mississippi, and Tennessee (at least in my area) have Grants to commercial companies. Are they taxable for Federal Purposes? Dunno. Maybe they are unless specifically exempted.

What about PPP Loans and EIDL Grants? Are they taxable for STATE purposes? Does it depend on the state, or is there a universal application unless specifically addressed by state statutes. As we know, states are not very responsive to events such as this, and it is doubtful that ANY of these decisions will be tackled by state legislatures this year.

[Lion]

Someone posted that there are four types of SBA loans that are not taxed by the feds, but I don't know what the other two are after PPP and the EIDGrant. Each state has their own laws about what to do about PPP forgiven loans/expenses and other CARES Act and CAA issues. For instance, NY and CA have decoupled from some/all provisions of The CARES Act, but NY has shifted back on some. AICPA has had a state-by-state list that they update frequently. There may be other sources. With the constant changes and "clarifications," I wait until I start preparing a state return and then check their website.