SOLVED How to enter 2021 COVID California Relief Grant

Forum|Forum|4 years ago
January 21, 2022
1 reply
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Hi,

I'm a sole prop with a small business and I received the CA Relief Grant for small businesses in 2021. I believe it is to be taxed on Federal, but not State. I have not received a 1099, although I received the funds. How do I enter into Turbotax Desktop. Please note, I have Turbotax Desktop, not online.

Thank you.

Edit: Issue was resolved in the CA state portion of turbotax.

DaveF1006

Yes, it is taxable but since it is reported as Self-employed income, you may deduct expenses associated with the grant. To report in Turbo Tax Home and Business Desktop:

Open Turbo Tax
Select the Business tab
Choose what you work on.
Go to Business income and Expenses>profit and loss from Business>start
You will need to set up a business profile if you haven't done so already.
Once you finish the profile, you will reach a screen that says Your XXX Business.
Next select Business Income>start
Next will be several categories of income. For the Grant income, you will want to select General Income
Under the description, you will put CA Relief Grant for small Businesses and the amount.

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doninlaAuthor

In case anyone else is dealing with this, my understanding is that the CA relief grant is taxable on Fed taxes, but not taxable in CA state.

aboudreaux

Yes. And while filing your California return in TurboTax Online or Desktop you can report this by going to Income and Adjustments > Business > Small Business Covid-19 Relief Grant Program. Select "Start". You will put the amount recieved in here, and it will exclude it from you California income on your return.