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Level 1
March 19, 2021
Question

Are state grants subject to self employment income? if not how is it entered in Lacerte?

  • March 19, 2021
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2 replies

itonewbie
Level 15
March 19, 2021

Generally yes unless it is specifically tax exempt and the relevant conditions are met.

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qbteachmt
Level 15
March 19, 2021

It depends on the grant's purpose. Your State might treat it differently, as well. Otherwise, yes, Feds consider a grant to the business to be Business Income.

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