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Is Medicare Stimulus money taxable

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  • Is Medicare Stimulus money taxable

    I am a 1099 independent contractor who works at a private practice clinic who just received Medicare stimulus money based upon 2019 earnings. That money is then being distributed to the providers and I just received my check this week. My question is if this stimulus money is taxable for 2020 and should be included on my estimated quarterly tax payments. For instance, I know the PPP money if used appropriately would not be taxable but I wasn't sure about the Medicare stimulus money.

    Thank you.

  • #2
    the more appropriate question I think is is the payment to the Practice includable in the gross income of the Practice

    I believe the payments are includable in gross income, I have not seen guidance to the contrary but haven't yet gone out to research

    payments to you from the Practice I think would certainly be taxable

    as it stands now the PPP money is in effect taxable income, because the IRS has declared that no deduction can be taken for otherwise deductible expenses that are forgiven as part of the PPP