Entry Error Schedule M-1 Tax exempt interest out of state

[vnvjewelry]

I am using Turbo Tax Business. I am getting and error can can't e file due to an entry error.  The error is on the Schedule M-1 worksheet. It is requesting tp delete the entries made on Schedule L, line 16b and re-enter the tax exempt income items on the Schedule M-1 instead.  When I check this is referring to the PPP loan forgiveness amount.  Turbo Tax is reporting the amount in the K1 form under line 16b but this is creating the entry error with this error message. I don't know how to fix this and seems to be a bug as in the entry error the field in "red" is the Tax exempt interest out of state which has nothing to do as I have not reported any Tax interest out of state.  have anyone experienced this error ? How can I get this reported to turbo tax ?

[AliciaP1]

This is a known issue and we are working to resolve this.  There is a workaround for this so you do not have to delay filing your return.

Please follow these steps:

1. In Step-by-step mode,  under Business Info click the About Your Business tab
2. Click Continue until you get to the Forgiven PPP Loan page and answer No.
3. Switch to forms mode, click on Sch M-1 Wks.
4. Under Other permanent income items add the description "PPP loan forgiveness" and the dollar amount in the Per Books column.
5. Scroll down to Other permanent expense items, list the description "PPP funded expenses" and enter the amount of covered expenses for your PPP loan.
6. On the left, click PPP Loan Stmt
7. Scroll to the bottom of the page and respond to the questions on the Smart worksheet

[Double D1]

I receive the same software error message, and it's likely due to the EXTREMELY LATE version of the software.  I do NOT want to file an extensive tax return by MAIL, when TURBOTAX screwed-up the interface between Schedule M-1 and the K-1.  There is virtually NO software support for Turbotax Business, so I'm going to try a different software package next year and maybe they won't wait until the last minute to issue a valid version of tax software that allows customers to file electronically.

[Double D1]

I was able to file my business tax return electronically after pursuing the "manual workaround" referenced above.  I have never received any PPP loan and should not have been required to input more information for a PPP loan that had nothing to do with tax-exempt interest.  This issue was extremely annoying given the "last minute" version of the software provided.   Thanks Alicia for providing a way to actually override the issue through a series of steps ... that should not be required of any taxpayer who never received a PPP loan.