Guidance on Grant Funds & Taxes
As a recipient of Cook County COVID-19 Recovery Grant Recipient/Coronavirus Relief Funds (CRF) through the county, you should have received a 1099-MISC Form from the WBDC. If you have not received your form please email COVID19Help@wbdc.org. Please include the name of your business, the business owner’s name, and the programs you participated in.
State and local grants are ordinarily taxable for federal income purposes, and federal grants are taxable unless stated otherwise in the legislation authorizing the grant.
A business’ receipt of CRF awards generally is not excluded from gross income and therefore taxable. As such, it appears the prime recipient has a reporting obligation if the amount is above $600 and paid to a noncorporation, such as a small business, nonprofit organization, and city or county government agency.
For further inquiry on this topic, please visit the IRS’ CARES Act frequently asked questions page.
We recommend that all small businesses consult with a CPA/accountant or check out the IRS website for in depth questions about how this impacts their taxes.