Hi
I have my PPP loan forgiven for my S-Corp in 2021 and when I reported it in TurboTax Business, the Schedule K1 (1120-S) show that forgiven amount in Box 16 Code B (Other tax-exempt income). However, on my NJ-K-1, this amount is included in the S-Corp income. This is inflating my numbers on my personal state returns.
Per my readings, the forgiven PPP loan amount is not taxable at both Federal and State (NJ) returns. See the NJ website link below.
https://www.state.nj.us/treasury/taxation/ppploan.shtml#:~:text=For%20Gross%20Income%20Tax%20purpose...).
How do I correct this? I am not sure if this needs to be corrected in Turbo Tax Business or Turbo Tax personal.
@PatriciaV Can I override the numbers on my state return (specifically on NJ-K-1) instead of using the numbers transferred from Federal?
Thanks in advance.
