If you applied in 2021 but the loan wasn't forgiven until 2022, the answer is probably "No." In this case, you would not enter an amount on this page. You'll report the loan forgiveness on your 2022 tax return.
In most cases, you are a cash-basis taxpayer so you report income when it is received. In the case of your loan forgiveness, that would be in 2022. It's considered debt forgiveness income, even though you received the cash in 2021. But you don't report the income until you know the loan is forgiven. This is the first of the three choices ("Treat tax-exempt income resulting from PPP loan forgiveness as received").
However, some taxpayers will choose:
1. "As, and to the extend, that expenses are paid or incurred." You "book" the loan forgiveness as you book the expenses paid with the loan, with the expectation that the loan will be forgiven.
2. "When forgiveness is applied for." You "accrue" the forgiveness income when you send in the application; as a cash-basis taxpayer, you don't accrue anything.
Finally, unless you chose to use the accrual-basis of accounting (uncommon), you are a cash-basis taxpayer.
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