Reporting a forgiven PPP Loan

Forum|Forum|5 years ago
January 9, 2021
2 replies
15 views

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

Level 15

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.