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1099-G small business covid relief grant

LSTAX
Level 4

Taxpayer received form 1099-G from Governor's Office of Business and Econ. Box 6 Taxable Grants has $15,000. It is a small business covid relief grant.  Lacerte has a entry on screen 14.2 and you can enter -1 for California so it is taxed federal but not CA.  Is this the proper entry screen or should the income go on schedule C subject to self employment tax, etc? 

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qbteachmt
Level 15

Here's the Help article:

https://proconnect.intuit.com/support/en-us/help-article/state-taxes/enter-ca-stimulus-ppp-grants-la...

 

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2 Comments 2
qbteachmt
Level 15

It's a business grant, which makes it business income, the same as if they had done that business. 

 

This is the reference I use:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

 

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"Level Up" is a gaming function, not a real life function.
qbteachmt
Level 15

Here's the Help article:

https://proconnect.intuit.com/support/en-us/help-article/state-taxes/enter-ca-stimulus-ppp-grants-la...

 

*******************************
"Level Up" is a gaming function, not a real life function.