Covid Relief $$$ tax advise

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ratpacker05
Posts: 25
Joined: Fri Feb 12, 2016 5:42 pm

Covid Relief $$$ tax advise

Post by ratpacker05 »

After jumping through numerous hoops, the city we live in has approved our receiving $30,000 in Rental Assistance to cover !5 months @$2000/mo. from May 2020 through July 2021 since our tenant/son could not pay his rent. We are due to receive this money at the end of November so was wondering if anyone can tell me the tax implications of receiving this large sum of money?
In 2021 we only claimed $8000 in rental income since we had only received rent for Jan-April 2020. I'm assuming that for our 2022 returns I can now claim $24,000 rental income or should we claim that we received $2500/mo rental income? BTW that is actually a realistic, though low rent for a 3BD2BA home in San Diego County.
Also any advice where we should put this $30,000? We currently have liquid assets to cover 6-9 months living expenses but also receive monthly pension and social security income which is enough to cover our living expenses so we do not have to touch any of our Vanguard assets which are as of today 64.9% Stocks. 30.9% Bonds 4.2% Short-term reserves. I am almost 69 and my husband is 75

Thank you in advance for any assistance
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