turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Where do we report a PPP and EIDL loan?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

6 Replies

Where do we report a PPP and EIDL loan?

You do not report PPP loan or EIDL grant on your taxes.  They are not taxable..  You will need to include them in your bookkeeping entries, but not on your tax returns.

Where do we report a PPP and EIDL loan?

Hi there, I'm chiming in since my company (S-corp) received PPP ($72K) and a disaster loan of $50K, using TurboTax business, how do we offset the incoming PPP to outgoing payroll. The payroll is reported as an expense, but no incoming PPP?

We did receive a SBA EIDL (Economic Injury Disaster Loan) of $50K, how is this reported?

 

Thank you!

ThomasM125
Expert Alumni

Where do we report a PPP and EIDL loan?

If you think the PPP loan will be forgiven, then you won't report it as taxable income in TurboTax. You would report it on line 16(a) of Schedule K as Other Tax-Exempt Income. It would appear on your financial statement as either loan payable or other income, so there may be a reconciliation issue if you report your balance sheet on your tax return. This may be aided by the entries in Schedule M-1 and M-2 in TurboTax and on your corporate income tax return.

 

You would treat the EIDL the same if it is not to be paid back, otherwise you wouldn't report it except as a loan amount on your balance sheet.

 

You can deduct the expenses you used the payments for as you normally would. The expenses are deductible even though you may have received tax-free grants to pay for them.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Where do we report a PPP and EIDL loan?

Line 16 on the k-1 is foreign income.  LIne 18 is tax exempt income

DaveF1006
Expert Alumni

Where do we report a PPP and EIDL loan?

it depends. According to Super Turbo Tax Agent ThomasM125, in this link, these payments are not taxable. My question is, are you preparing a K in your business program and looking to expense them? If so, what type of business entity do you have? Is it an S-Corp or Partnership?

 

in addition, ThomasM125 is referring to reporting these as a schedule K in the business return.  Schedule K-1 is a form that is distributed to the shareholders to determine what they will report on their individual tax returns.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Where do we report a PPP and EIDL loan?

"you preparing a K in your business program and looking to expense them? If so, what type of business entity do you have? Is it an S-Corp or Partnership?"

 

Yes.

S-Corp.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies