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Non-taxable income feature?

SohumSohum Member Posts: 2

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!

in Wave Features

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    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:

  • SohumSohum Member Posts: 2

    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!

  • MikegMikeg Member Posts: 995 ✭✭✭

    @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).

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