Thanks George. This is what I was afraid of. I really never thought that CA would be taxing this as income until I saw it mentioned in one tiny little section on TurboTax. Considering how many thousands of businesses this applies to, you would think it would be called out a little more clearly! It seems especially bizarre for those of us who are sole proprietors and used the funds as owner compensation, as allowed under the federal law. We do not deduct that as an expense on our Schedule C, so there is no "double dipping" for us. It's not like we got the loan funds plus the expense deduction for what we used the funds on. There is no expense deduction, just a taxation on the loan funds. So weird, especially since AB80 goes into all the reasons they would not tax these funds as income, but then they do tax the loans paid out during those few months, which were meant to help the smallest businesses. Baffling! But I guess that's tax law!
I did receive my loan draws during that period, one in April and one in June.
@GeorgeM777
