JamesG1
Expert Alumni

Get your taxes done using TurboTax

You report the forgiven PPP loan as non-taxable income.  In TurboTax Business for an 1120S member:  

  • Across the top of the screen, click on Federal Taxes
  • Click on Balance Sheet.
  • Enter Total Year-end assets.  Click Continue.
  • Click No, I want to complete my balance sheet.  Click Continue.
  • Under Your reconciliations and balance sheet, click on Edit to the right of Income reconciliation.
  • Click No, I’ll enter a different book income.  Click Continue.
  • If non-taxable PPP loan is $10,000, taxable income for the year is $59,000, so book income must now be $69,000.  Click Continue.
  • At Your reconciliations and balance sheet, make sure all three schedules are in balance.
  • Click on Forms mode. 
  • Click on M-1 Worksheet.  The forgiven PPP loan will be listed under Permanent Items (tax-exempt income).
  • Click on a K-1.  The forgiven PPP loan will be listed under line 16 code B.

States vary on their treatment.

 

 

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