In an effort to stave off economic devastation caused by the COVID-19 pandemic, billions of dollars in grants are being handed out to individuals and businesses by the federal government and by state and local governments as well.
Are these grants taxable? Like most things in the world of taxes, it depends.
What Is a Grant?
This might seem like a dumb question, but we’ll answer it anyway because there are no dumb tax questions.
A grant is money you don’t have to pay back.
In contrast, you have to pay back a loan. For example, a Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) has to be paid ... Log in to view full article.