I am filing my state return for MN. I'm a sole proprietor and received a small Paycheck Protection Program sum which was fully forgiven last year. MN has not conformed to the federal standard that PPP isn't considered business income. So in MN PPP funds are still considered income and thus taxable. This is the only question on the state return regarding the PPP funds, and I'm not quite sure what they're asking here. Can someone please explain in simpler terms what this means? I especially don't understand the "subtract the expenses that would have been deductible if you had not claimed the loan forgiveness treatment." WHAT?
