Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
MK100
Returning Member

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

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)?

3 Replies
tagteam
Level 15

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


@MK100 wrote:

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


You might have to contact Support for this issue.

 

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

Critter-3
Level 15

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

@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
Returning Member

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

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.
Dynamic AdsDynamic Ads
Privacy Settings
v