The problem may be the result of the way the question about PPP loan was answered.
If the PPP loan is forgiven, you do not report the loan as income. Here are a few questions that might help give some resolutions based on possible answers.
- How did you report receiving the Loan in your Books? It should have been deposited but a liability account should have been set up for showing the PPP loan. It should have been reported as other income or non-taxable income.
- Did you receive forgiveness of the PPP loan before December 31, 2021? If so, the liability should have shown on your Balance Sheet.
- If the PPP loan was forgiven before December 31, 2021, then the PPP loan should not be reported as either income or a liability on your tax return.
- The PPP loan should be reported on line 16(a) of Schedule K as Other Tax-Exempt Income.
To fix the problem go back to where TurboTax was asking you the questions about PPP loan and answer the question NO. Answering No to the PPP loan questions should fix your problem.
If this does not fix the problem, have your tried to call TurboTax Live. There are experts answer the phones that may be able to help you fix this problem.
