New York State COVID-19 Pandemic Small Business Recovery Grant Program $50,000 maximum):
The proceeds from grant are included in the federal income of entities that receive them and are excluded from income for purposes of the New York State income tax.
S-Corps that receive this grant report the NY subtraction adjustment to income on Form CT-225, using code S-219.
The Individuals who receive a Schedules K-1 report this subtraction adjustment on their NY personal income tax returns using the same code S-219 on Form IT-225.
------------------------------
Marc Lusthaus
CPA
ROBERT S. LUSTHAUS, CPA PC
Plainview NY
------------------------------
Original Message:
Sent: 02-07-2023 10:05 AM
From: James Greebel
Subject: NYS Grants
Hello
One of my clients received a 1099 G for his S Corp from NYS for a covid relief grant that is saying its taxable. for over $20k
Are these grants from NYS taxable for both federal and NYS?
Thank you