stimulus, grants are taxable?

Forum|Forum|5 years ago
January 3, 2021
1 reply
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i am a health care provider, sole proprietor, i received money from "cares act provider relief fund"( hhs stimulus payment) do i have to pay any tax ? is it considered as income? thanks much, Pio

B

Bsch4477

Employee

Those payments are not taxed. The details are here:

https://www.hhs.gov/sites/default/files/provider-relief-fund-general-distribution-faqs.pdf

D

drobduster3

Those payment do appear to be taxable on page 5 of the document cited. Where on the document do you find otherwise?

KathrynG3

While you are correct that the Provider Relief Fund payments have a different reporting requirement than the individual stimulus payments, the information sited is not the most recent. Please reach out to the U.S. Department of Health and Human Services for more guidance. The specific type of Provider Relief Fund will affect your reporting requirements.

You must be referring to this question on page 5 of CARES Act Provider Relief Fund Frequently Asked Questions:

May a health care provider that receives a payment from the Provider Relief Fund exclude this payment from gross income as a qualified disaster relief payment under section 139 of the Internal Revenue Code (Code)? (Added 7/10/2020) No. A payment to a business, even if the business is a sole proprietorship, does not qualify as a qualified disaster relief payment under section 139. The payment from the Provider Relief Fund is includible in gross income under section 61 of the Code. For more information, visit the Internal Revenue Services’ website at https://www.irs.gov/newsroom/frequently-askedquestions-about-taxation-of-provider-relief-payments.

See:

General and Targeted Distribution Post-Payment Notice of Reporting Requirements (As of January 15, 2021)

CARES Act Provider Relief Fund: FAQs includes contact information: For additional assistance applying, please call the provider support line at (866) 569-3522; for TTY dial 711. Hours of operation are 7 a.m. to 10 p.m. Central Time, Monday through Friday.

@drobduster3