It depends.
For the state of California, a forgiven PPP loan is treated as income while the IRS doesn't handle it that way. If you aren't from CA, then you do not have to make an entry on TurboTax since the forgiven loan is not a taxable event. If you are in California, wait before you file your taxes because they are talking about conforming with the Federal government. See this link for the legislature.
The PPP loan forgiveness is a bookkeeping issue and does not affect your taxes. You do not have to pay tax on the PPP amounts. Under the CARES Act, the forgiven loan amount won't be included in taxable income.
The Paycheck Protection Program (PPP) is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which consisted of government-backed loans to help small businesses and other eligible applicants continue covering payroll costs and certain operating expenses during the coronavirus (COVID-19) pandemic. These loans were available to:
- Small businesses with less than 500 employees
- Sole proprietorships
- Independent contractors
- Eligible self-employed individuals
Under certain criteria, and if you use the funds as directed by the SBA, the loan may be completely or partially forgiven. Go here to learn about PPP loan forgiveness.
Regarding the EIDL, it's an advance loan. You don't record loans as taxable income.
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