Should I report PPP loan in the year of receiving or forgiveness

[MK100]

Hello, I am a sole prop and received a PPP loan in 2020. Then in 2021 I applied for forgiveness. In my case, should I report the PPP loan as the tax-exempt income in 2020 tax return?    If so, then I have to fix an amendment for the 2020 return. It seems that turbotax didn't have PPP loan input for the 2020 tax year when I filed. 

Or can I just report it in the 2021 tax return (the year of forgiveness)?

[tagteam]

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@MK100 wrote:

It seems that turbotax didn't have PPP loan input for the 2020 tax year when I filed. 

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You might have to contact Support for this issue.

What is the TurboTax phone number? (intuit.com)

[Critter-3]

@MK100 

If you are a sole proprietor filing a Sch C  then the PPP loan was NOT to be reported as income and the forgiveness is not reported anywhere ... it is treated as a non issue.   However, all the expenses it paid for  ARE allowed as an expense on the Sch C.  One of those weird quicks in the tax law.  

[MK100]

Thank you! Yes, I am a sole prop filing schedule C. Are you saying I don't even need to attach any info related to PPP loan to my return? Just treat it the same as never being existing?

I saw the following from internet. Can you confirm that it is not applicable for a sole prop filing Schedule C? 

Taxpayer Statement

In accordance with Rev. Proc. 2021-48, the 2021 instructions to Forms 1040, 1041, 1065, 1120, and 1120-S require taxpayers that recognize tax-exempt income from a forgiven PPP loan to attach a statement to the taxpayer’s tax return for each tax year in which the tax-exempt income is recognized. The statement should include the following information for each PPP loan:

• The taxpayer’s name, address, and EIN or SSN;
• Which section(s) of Rev. Proc. 2021-48 the taxpayer is applying (section(s) 3.01(1), (2), or (3));
• The amount of tax-exempt income from forgiveness of the PPP loan that the taxpayer is treating as received or accrued during the year; and
• Whether or not forgiveness of the PPP loan has been granted as of the date the return to which the statement is being attached is filed.