We are an S-corp that files in CA. TurboTax Biz for 2022 stated the following:
Our S-corp did have loan forgiveness that falls into that time period and was taxed in 2021, so we would like to file an amended return as the message suggests. We still have our 2021 version of the software too.
Thanks for any assistance.
Yes, you should definitely amend your 2021 return before working on 2022. You want to begin 2022 with the amended information.
When you first open TurboTax Business for 2021, be sure you agree to all TurboTax updates. You should be asked about amending your return in the first few screens after opening last year's file. Follow the prompts about amending. Then go to the California tab and review your answers about the PPP Loan. Since the state tax law has changed, you should be able to exclude that income from state tax.
Be sure to save the 2021 TurboTax file with a new name (add "amended" perhaps). When you are finished and have filed the amended return, open that file in TurboTax 2022 so you start with the updated information.
> Then go to the California tab and review your answers about the PPP Loan.
How? I got asked about amending the return (that went fine) then here's what I found.
1. I click the "State" tab, then "Edit" on the state return.
2. It asks me for an explanation for why an amendment is being made.
3. It then asks for a signature and gives instructions to print and mail.
There were no opportunities for changing amounts in Step-by-Step. As near as I can tell, the only way to manipulate items in TurboTax is to edit the state forms directly, and even then you can't change the original amounts, you need to put in additions/subtractions.
Because the regulation has been updated, as well as the software, the PPP loan should already have been removed from your income as soon as you clicked amend. Check the forms that it is telling you to mail in and see if your income has already been adjusted. If it has not then make sure that it was classified as a PPP loan when you entered it.