Ephesians3-14
Level 8

My client received $1,000 as an EIDL grant in April and then received $20,000 as a PPP loan. I know that the PPP loan proceeds are tax-free and that the proceeds can be used to pay for deductible expenses.

Regarding the $1,000...is that also tax-free under the recently passed legislation?

0 Cheers
TaxGuyBill
Level 15

Yes, it is treated the same way as PPP.  It is not taxable and the expenses are deductible.

View solution in original post

Dependable
Level 4

If a client only received a EIDL loan for $20K is it taxable?

0 Cheers
sjrcpa
Level 15

Not taxable but it is a loan and needs to be repaid.


Ex-AllStar
Dependable
Level 4

Thank you much

0 Cheers