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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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April 4, 2021
10:43 AM
5,345 Views