How do I determine if a 1099MISC "grant" issued to daycare facility due to loss of kids because of C

1DeTaxman1
1DeTaxman1 Member Posts: 4 Newcomer
in Filing my taxes

How do I determine if a 1099MISC "grant" issued to daycare facility due to loss of kids because of COVID is taxable income?

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  • rachels
    rachels FreeTaxUSA Agent Posts: 81

    Hi 1DeTaxman1,

    The IRS issued some Q&A's about Covid government payments to businesses. One answer states, "The receipt of a government grant by a business generally is not excluded from the business's gross income under the Code and therefore is taxable."

    In other words, based on that guidance, a Covid grant to your business would be included as taxable income for your business.

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