You would put in on page 4 line 18b. The Consolidated Appropriations Act of 2020 passed on 12/27/2020 states the PPP Loan is tax free if forgiven and the expenses paid with that loan are deductible. Just took a class on this on January 30, 2021. PPP Loan 1 and 2 are completely tax-free. General business expenses-including "Forgiveness expenses" are deductible. Not available to bankruptcy yet. The EIDL grant is tax-free also if there is proof of substantial economic injury. Employee Tax Retention Credit for 2020 required a 50% revenue decrease for a calendar quarter, the new ETRC for 2021 Q1 & Q2 requires 20% revenue decrease for a calendar quarter. Cannot use same wages as PPP loan. But if you paid employees before you received the PPP loan after the country was closed down or after the qualified period for PPP loan you can amend your 941 tax returns for 2020.
