AliciaP1
Expert Alumni

Business & farm

Your friend should receive a 1099-G for the unemployment benefits paid to them.  You can enter it into TurboTax Online by following these steps:

Open or continue your tax return.

  1. Search for 1099-G and select the Jump to link at the top of the search results.
  2. On the Did you receive unemployment or paid family leave benefits in 2021? screen, answer Yes.
  3. Follow the on-screen instructions to enter your 1099-G information.

The PPP loan does not get reported on a Schedule C.  The funds are nontaxable even if the loan is forgiven, while the expenses paid with the funds are still deductible.

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