Reporting a forgiven PPP Loan

[Anonymous]

Since income from a forgiven PPP loan is not taxable and expenses paid with the funds are still deductible, do I not report it as income in TurboTax? In Quickbooks I have entered it as other income "PPP Loan Forgiveness".

Thanks.

[platterell]

pkhofman, did you get an answer to your question?  I'm trying to figure out our company taxes and don't know what to do with the forgiven ppp loan.

[JamesG1]

Are you are reporting the forgiven PPP loan as non-taxable interest?  What form are you filing?

In TurboTax Business for an 1120S:

• Under Your Income, Investment Income, click Start / Update to the right of Interest and dividend income?
• At the screen, Tax-Exempt Interest, enter the forgiven PPP loan.
• The K-1 and M1 / M2 calculations should report correctly.

In TurboTax Business for a 1065:

• Under Your Income, Investment Income, click Start / Update to the right of Interest and dividend income?
• At the screen, Tax-Exempt Interest, enter the forgiven PPP loan.
• The K-1 and M1 / M2 calculations should report correctly.

[bpackard416]

Any answers? Im filing as a 1099 independent contractor. My loan forgiveness is still pending but it was under the $150,000 threshold. I cant find an answer anywhere saying if I can or can't file my taxes...

[npierson7]

You don't have to report it if it's still pending. Loan itself isn't income; however the forgiven part could be a taxable income for you. Until you receive the final form from your financial institution there is nothing to report.