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soulfire
Returning Member

Self employment under ppp from add detail

What forms I need. To file and how
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2 Replies
DianeW777
Expert Alumni

Self employment under ppp from add detail

File a Schedule C if you are a self-employed sole proprietor.  Report all of your income and expenses on this schedule and TurboTax will walk you through the process.

 

Schedule C is supported in TurboTax Self-Employed (both online and in the mobile app) and in all personal 1040 versions of the TurboTax CD/Download software.

 

To set up your business: 

If you are not incorporated or a different entity the name of the business is usually your name, if there is no separate business location the business address is your address.

  1. Open or continue your return.
  2. Search for schedule c > Press enter  > click the Jump to link in the search results.
  3. Answer Yes to Did you have any self-employment income or expenses?
    • If you've already entered self-employment work and need to enter more, select Add another line of work.
  4. Follow the onscreen instructions.

The PPP loan is like any other loan that a business might use except you do have to meet the record keeping about how these funds were used.  Any money used from the loan proceeds are expensed as if you paid them yourself, borrowed funds or used a credit card.

 

The PPP loan is not income just like any personal loan would not be income. 

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Josie6
New Member

Self employment under ppp from add detail

A self-employed person who pays himself/herself from earnings of the business rather than through payroll (payroll requires employee and employer tax), cannot deduct checks written to themselves from the PPP loan.  Only the allowed expenses  (for example rent and utilities) of the business which would include payroll paid to employees or in some cases to the proprietor, can be deducted on Schedule C.  The total amount of the PPP loan is not taxable.  

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