I have a similar issue to some others on here but my head is swimming. I am in CA and received my PPP first and second draw loans during that non-conforming period in 2021. I meet the 25% qualification. I entered the PPP forgiveness in the pertinent section for Miscellaneous Income in the Federal Tax section. I understand that this is not taxable income for the Feds.
I am confused about what to fill out on the State return on the "Other Adjustments" page. If I used the PPP funds as owner compensation, do I need to put the full amount of my PPP loans here and therefore gets taxed on them? I have read through this entire thread and I just can't figure this out.
