Businesses buoyed by coronavirus relief funding may face a new wave of uncertainty this tax filing season as rules about how that money should be reported on federal and state income taxes continue to shift.
But, not all states followed suit — and many have been inconsistent with the tax treatment of COVID-19 funding at the state level — causing confusion for businesses owners. Other states altered their tax treatment of PPP loans and expenses in 2021, meaning businesses may need to file amended returns. Plus: Use an SUV or pickup truck for your small business? Take advantage of these generous tax breaks
If you’re unclear on your state’s rules, check your tax documents and consult a tax professional, says Talibah Bayles, founder and CEO of Birmingham, Alabama-based TMB Tax & Financial Services.