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Client received an EIDL Grant and a PPP Loan - Are Both non-taxable?

Ephesians3-14
Level 8

My client received $1,000 as an EIDL grant in April and then received $20,000 as a PPP loan. I know that the PPP loan proceeds are tax-free and that the proceeds can be used to pay for deductible expenses.

Regarding the $1,000...is that also tax-free under the recently passed legislation?

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Accepted Solutions
TaxGuyBill
Level 15

Yes, it is treated the same way as PPP.  It is not taxable and the expenses are deductible.

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4 Comments 4
TaxGuyBill
Level 15

Yes, it is treated the same way as PPP.  It is not taxable and the expenses are deductible.

Dependable
Level 4

If a client only received a EIDL loan for $20K is it taxable?

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sjrcpa
Level 15

Not taxable but it is a loan and needs to be repaid.

The more I know, the more I don't know.
Dependable
Level 4

Thank you much

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