PPP Loans for Form 1120-S

[Kkight]

I received a PPP loan in 2020 and recorded it as a liability on my balance sheet as it was not forgiven by the end of the year. I received a 2nd PPP loan in 2021. Both loans were forgiven in 2021. How do I enter this on my 2021 tax return in TurboTax Business?

[JamesG1]

In TurboTax Business, go to Business Info / About Your Business.

Continue to the screen Forgiven PPP Loan.

Answer Yes and enter the amount of the forgiven PPP.

Follow instructions to report the forgiveness.

[Edited 3/10/2022 11:49 AM PST]

@Kkight 

[Kkight]

Thank you. Do I include the amount in my income somewhere?

[ThomasM125 · Accepted solution]

The amount should be reported as tax-exempt income on your tax return. It would show up on line 16(a) of schedule K on a form 1120-S and line 18(b) on schedule K of form 1065. 

If you followed the instruction of @JamesG1, it should be there already.