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What Are Business Grants & Are They Taxable?

    Erica Seppala
  • UPDATED

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Erica Seppala

Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
Erica Seppala
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6 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Joe Cantu

    Is TexasBackInBussiness grants taxable

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Hi Joe,

      We haven’t found any language indicating that the Texas Back In Business grants aren’t taxable. So, since there is no indication otherwise, we would assume that this grant is treated like most other small business grants and would need to be included in taxable income. Hope that helps and best of luck to you!

        This comment refers to an earlier version of this post and may be outdated.

        Jackson

        Do you have to claim small business grants on your taxes?

          This comment refers to an earlier version of this post and may be outdated.

          Jessica Dinsmore

          Hi Jackson,

          In most instances, grant funds are counted as taxable income on your federal tax return. This means that you will be required to pay taxes on these funds. The financial impact of a grant come tax time depends on multiple factors, including your business structure. We cover all that in the post here in the Are Grants Taxable? section.

            This comment refers to an earlier version of this post and may be outdated.

            Nadiya F

            The Consolidated Appropriations Act provides that taxable income does not include EIDL grants. In other words, EIDL advance mentioned in this article is not taxable. There were different interpretations, even by IRS, however, at the end of the day, it was clarified that EIDL grant (advance) is not taxable; expenses paid using this grant are deductible.

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Nadiya,

              Thank you! We’ve updated the post with the most current information.

                This comment refers to an earlier version of this post and may be outdated.

              Comments are closed.

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