Earlier this year, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help mitigate the economic damage caused by the COVID-19 pandemic.
At the time, there was some confusion about the details of the program. Now some of those details have been clarified, although the information is still subject to change.
As it stands now, any money received through the CARES Act will be considered taxable income.
If a business received a loan through the Paycheck Protection Program (PPP), if the loan is forgiven, the expenses you spent it on can't be deducted--essentially making that taxable income as well.
As we said, this information is subject to change, so stay tuned for updates.