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Farmers and Coronavirus income

According to everything I have read, income reported on CCC 1099-G (CFAP) and Forestry Financial Assistance reported on 1099-G box 6 taxable grants (Alabama CARES) is nontaxable due to federal disaster qualification. Am I understanding this correctly? If so, do I even have to list the taxable grant anywhere on the return?

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Level 15

Are you sure? Everything I've seen and dealt with, is that it is taxable, because it was only given as a result of CARES (disaster declaration is the why, already, so there is not also declaration exemption) and it is supposed to be spent as usual on mitigating the impact of the declaration. That means the reportable income is going to be offset by reportable but unexpected expense.

I have had this tab open for nearly a year:

https://commerce.mt.gov/Montana-Coronavirus-Relief/Awarded-Grants

And they give me this link:

https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions

 

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Level 15

Farmers Tax Guide:

What's New for 2020

The following items highlight a number of administrative and tax law changes for 2020. They are discussed in more detail throughout the publication.

Coronavirus Food Assistance Program (CFAP). The CFAP provides direct payments to producers of eligible agricultural commodities adversely affected by the conronavirus (COVID-19) pandemic to help offset sales losses and increased marketing costs associated with the COVID-19 pandemic.CFAP payments are agricultural program payments that you must include in gross income. Report the full amount of your CFAP payments on Schedule F (Form 1040), lines 4a and 4b. See the Instructions for Schedule F (Form 1040).

 

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