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State and county business covid grants taxable for federal but not state

dmccpa
Level 3

I personally received a business covid grant from my county.  IRS says it's taxable but my state (NJ) says that any state or county covid grants are not taxable.  There is no worksheet within proseries to address this so I called.  I sent a sanitized file and was told "we can't provide you with tax advice" I said that answer is not acceptable as I'm not asking for tax advice, I am asking for data input advice.  Then I was asked to screen share, got interrupted and got disconnected.  I don't want to arbitrarily change my schedule C profit on my state return if I'm sending a schedule C with a different number on it.  The only thing I could see was a state worksheet where I could use a supporting statement under non taxable interest and put the description on the supporting statement that it's a state tax free covid grant.  I asked the support person on the phone if the description I type on the worksheet will even be seen by the state and I couldn't get an answer to that either.  Does anyone have any knowledge on this and how to handle it?

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4 Comments 4
Just-Lisa-Now-
Level 15
Level 15
If you include which state youre dealing with, someone may be able to offer up some advice on how to make this adjustment.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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qbteachmt
Level 15

I've been involved with these for a year.

Look at this similar topic:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/is-a-cares-act-grant-to...

 

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dmccpa
Level 3

I appreciate your feedback but my issue is not with the taxability of the grant.  It is how to input it correctly to show the reduction in income on my NJ state return. I might have to call NJ div of taxation and ask them where they want to see it on the return because proseries support wasted my time and provided no solution. 

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Was this solved. I am also wondering how to put on 1120S being its taxable federal and non taxable to state of NJ. Any support would be great? 

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