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Non-taxable income feature?
![Sohum](https://us.v-cdn.net/6030557/uploads/defaultavatar/nB9U4F9UMD6RY.jpg)
I have created a new income category under Other Income called "Non-Taxable Income".
Is there some way to mark this income as tax-exempt?
Thank you!
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I have created a new income category under Other Income called "Non-Taxable Income".
Is there some way to mark this income as tax-exempt?
Thank you!
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Hey @Sohum !
Do you mind clarifying what type of income your are trying to distinguish as non-taxable in Wave? This will give me a better understanding of the situation and will allow me to assist you further.
Let me know!![:smile: :smile:](https://waveapps.vanillacommunities.com/resources/emoji/smile.png)
Hi Julian,
I received money from the SBA as a part of the COVID relief packages (wire code SBAD TREAS 310 I believe) that was classified as a grant (no repayment). My CPA has advised me to classify it as non-taxable income.
Thank you!
@Sohum,
You actually leave it on the income statement. However, you should create an account called Tax Exempt Income or PPP proceeds. If you received an EIDL payment, they are a grant and are not tax exempt. Your CPA should make an M-1 adjustment on your return (C-Corp, S-Corp or partnerships) to classify the tax exempt income (only the PPP qualifies).