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Level 2

How do I record an EIDG from SBA in QB self employed?

I had a deposit show up in my business checking account with the description MISC PAY SBAD TREAS 310 NTE*PMT*EIDG. Supposedly this is a forgivable grant. I've seen other conversations that recommended recording this as other income or in the case of an EIDL payment as a loan. QB self employed only has an Income category. How do I account for this grant payment in QBSE?

 

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Best answer May 07, 2020

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QuickBooks Team

How do I record an EIDG from SBA in QB self employed?

Good morning, @badarac.

 

Thanks for following up with us. 

 

When it comes to income, there are only two categories:

  • Business
  • Personal

Taxes are taken out on business income. I recommend checking out Income: Business Income. It explains what does and doesn't count as business income and I think you may find it very resourceful. If you still don't feel comfortable about what category you'd like to use, I recommend reaching out to your accountant, as they can advise what is best for you and your business. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center

 

Don't hesitate to let me know if you have further questions or concerns. You can always reach out to us here in the Community anytime you need a helping hand. Take care and enjoy the rest of your day! 

 

 

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QuickBooks Team

How do I record an EIDG from SBA in QB self employed?

Hi badarac. With QuickBooks Self Employed you can use the  Business Loan category now available in QuickBooks Self-Employed (QBSE) for you to track business loan transactions. However, it would be advised to reach out to a tax professional as well from our Find a Pro-Advisor page to further guide you on properly tracking your loans. 

 

If you want to  learn more about the categories available in QBSE, you can read the articles below. 

Please let me know if you need anything else, I'll be happy to help you get back on track to proper bookkeeping. 

 

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Level 2

How do I record an EIDG from SBA in QB self employed?

Thanks so much for your help. In this case it is not a loan, it's a grant (EIDG as opposed to EIDL). So technically I think it's income which may be non-taxable. In other QB products there is an Other Income account. I've seen recommendations for QBO to record it as Other Income non taxable. That doesn't exist in QBSE. Recording it as a loan would imply that it needs to be repaid and I'm not sure where that winds up in the P&L or SCH C. Any thoughts?

Highlighted
QuickBooks Team

How do I record an EIDG from SBA in QB self employed?

Good morning, @badarac.

 

Thanks for following up with us. 

 

When it comes to income, there are only two categories:

  • Business
  • Personal

Taxes are taken out on business income. I recommend checking out Income: Business Income. It explains what does and doesn't count as business income and I think you may find it very resourceful. If you still don't feel comfortable about what category you'd like to use, I recommend reaching out to your accountant, as they can advise what is best for you and your business. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center

 

Don't hesitate to let me know if you have further questions or concerns. You can always reach out to us here in the Community anytime you need a helping hand. Take care and enjoy the rest of your day! 

 

 

View solution in original post

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Level 2

How do I record an EIDG from SBA in QB self employed?

Thanks. That was helpful. I'll continue to follow up and will record it as personal income unless I find more clear guidance in the future. 

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Level 2

How do I record an EIDG from SBA in QB self employed?

According my personal CPA there is no clear answer yet on the EIDG funding. Yes it is a grant vs a loan but no details yet on whether or not it will be considered income. The EIDL is absolutely a loan, in most cases payable out over 30 years and should be on your balance sheet as a liability. Historically disaster grants have been taxable income but with the CARES act it is not clear as to what the intentions were so we are still waiting on an official decision

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