The COVID-19 pandemic has resulted in a major public health crisis. With the numerous lockdowns, curfew hours, and sick days, the resultant economic crisis has created a variety of challenges for small, micro, and solo businesses in communities across the country. As a result assistance was offered through Covid grant to help businesses across the country facilitate the urgent deployment of capital and support in order for these organizations not just persevere, but recover on solid footing during the economic crisis.
Was your business affected by the Covid-19 pandemic?
Did you receive a Covid grant?
By a general rule, grants are usually considered income. All income, from whatever source derived, is taxable income unless the tax law provides an exception. Many small business owners since the onset of the pandemic have received grant income for COVID but this could have a huge financial burden on their taxes if it’s taxable. This information definitely would be huge for taxpayers.
Are these Covid relief grants taxable?
Like most things in the world of taxes, it is not just a yes or no answer to that question, because the truth is, it depends. There are so many factors that come into play. With the upcoming tax season fastly approaching one should make sure you are knowledgeable about how receiving these grants may affect your taxes and whether or not, if you received a grant, if it is indeed taxable.
Are these grants really taxable? Will this affect your taxes?
Schedule a consultation with Zeigler & Barnes Financial Services. Contact us now, and we’ll gladly give you all the help you need.
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