Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Client received an EIDL Grant and a PPP Loan - Are Both non-taxable?

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?

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Level 13

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

View solution in original post

4 Replies 4
Level 13

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

View solution in original post

Level 4

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

0 Cheers
Level 15

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


ex-AllStar
Level 4

Thank you much

0 Cheers