Question

Do i report my ppp loan and forgiveness that i got in 2021 on this years taxes ?

Forum|Forum|3 years ago
February 20, 2023
1 reply
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on the state part of the taxes it ask about the ppp loan and forgivness. If i had got it in 2021 am i reporting it on this years taxes. This is for california state taxes.

TurboTax Self Employed Online

HopeS

The PPP Loan Forgiveness is reported as tax-exempt income for both Federal and California. Any money you receive from the loan forgiveness is not part of your gross income and therefore isn’t taxable. Additionally, the payroll and other expenses that PPP loan forgiveness covers are deductible.

Please review California FAQ in the link below for additional information:

California FAQs for PPP

@tomkamas8378

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N

nflink1

Do I report my PPP loan and forgiveness that I received (and reported) in 2021 on this year's tax form also? I reported this on 2021 form, but I'm being asked again in 2022 (the question doesn't specify "did you receive in 2022, it just says "did you receive"? It doesn't seem as though I should report this twice.

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GeorgeM777

No, you only need to report the PPP loan forgiveness once. A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Thus, we are assuming you have exhausted all of your loan proceeds. If you have already used up your PPP loan proceeds and reported/requested loan forgiveness on your 2021 tax return, then there is nothing more for you to report.

Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

@nflink1

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