Hello. I just received a check from my former PPP loan provider. My loan was partially forgiven in 2021 in the amount of $13,500. I just received a check in the mail from this same provider in the amount of $2,701. According to the provider, "You are due a refund for an overpayment made on your PPP loan before it was approved for partial forgiveness. The amount of $2,701 is the overpayment that was made." My question is, how should I treat this income for an S-Corp and how should I record this in Quickbooks/TurboTax? Thank you!
None of the PPP loan was ever considered income and the repayment of the loan was not an expense so the refund of the repayment is not reported as income. The loan and the repayment increases and decreases the liability account ... it is a bookkeeping entry and is only reported on the 1120S balance sheet if one must be completed.
None of the PPP loan was ever considered income and the repayment of the loan was not an expense so the refund of the repayment is not reported as income. The loan and the repayment increases and decreases the liability account ... it is a bookkeeping entry and is only reported on the 1120S balance sheet if one must be completed.