Taxable Cares Act Grants

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  • Taxprogals
    Junior Member
    • Feb 2021
    • 2
    #1

    Taxable Cares Act Grants

    I have several clients that received from our state a $12,000.00 grant. We have now received letters that this is a Federal grant and IS TAXABLE.
    The question is ? line 21 other taxable income or Sch C or Sch F taxable subject to self employment taxes. Thoughts are to argue this either way.
    Tags: None
    • BOB W
      Senior Member
      • Jun 2005
      • 4061
      #2
      I guess the first question to ask and answer is: Is grant money subject to Social Security? If No, I would say Line 21...??? Not sure how to separate if included on Sch C.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

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        • TaxGuyBill
          Senior Member
          • Oct 2013
          • 2320
          #3
          If they received the grant due to the business, it would seem to be business income.

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