Reporting a forgiven PPP Loan

4 replies
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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

Level 2

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

Alumni - Intuit

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.

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bpackard416

Level 2

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...

npierson777

Level 10

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.