In February, California changed it so that companies can deduct expenses that PPP loans are used for, up to $150,000, essentially mirroring the change at the Federal level. However, for TurboTax Business, when using the CA State program, it's revising the net taxable income upwards by the amount of the PPP loan, reflecting an adjustment for its treatment of the PPP loan versus Federal, which I don't believe is actually the case. It appears the software is just not up-to-date (although I do have the latest version). 😒
While it may not directly impact me since the apportionment of my S-Corporation's income to CA is zero (I just pay the franchise fee for being incorporated there), it still doesn't seem ideal to incorrectly file taxes. Any advice?
Taxes are due March 15, so TurboTax should have updated their software by now.
