I posted the original loan and the loan forgiveness as directed by Quickbooks. It is posted as Other Income - PPP Loan Forgiveness and shows on the P/L. TurboTax Business then generated the Schedule K-1 with the Net Income from the P/L in Box 1 on the Schedule K-1 (includes the PPP loan amount) and the PPP Loan Forgiveness amount in Box 16, Code B, Other Tax Exempt Income on the Schedule K-1. Why is the tax exempt portion not being deducted from the Ordinary Income in Box 1 when I enter the info Schedule K-1 info into TurboTax Deluxe? The tax return has already been filed for the S-corp which includes the Schedule K-1. Seem either Quickbooks or TurboTax has something incorrect.
