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Daycare and Taxes>Tom - PPP Post on Facebook Today
grandmom 03:47 PM 04-05-2021
Hey Tom,

I saw your PPP post on Facebook saying it wasn't taxable income. Is this also true for the PPP in 2020? I'm pretty sure it was included in my "income" when I did 2020 taxes.

Thanks for your reply.
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TomCopeland 10:22 AM 04-06-2021
Originally Posted by grandmom:
Hey Tom,

I saw your PPP post on Facebook saying it wasn't taxable income. Is this also true for the PPP in 2020? I'm pretty sure it was included in my "income" when I did 2020 taxes.

Thanks for your reply.
PPP money received in 2020 is not taxable income. If it was included, file an amended tax return (Form 1040X) and get a refund.
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Jo123ABC 01:38 PM 04-06-2021
Originally Posted by TomCopeland:
PPP money received in 2020 is not taxable income. If it was included, file an amended tax return (Form 1040X) and get a refund.
My mom works for an accountant. I think the irs is trying to fix it on their end rather than do a bunch of amendments but I don't know that they have it all figured out yet. It costs money to do an amendment. I was really glad I procrastinated on my taxes a bit this year and did them after the ppp tax stuff was decided.
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grandmom 02:52 PM 04-06-2021
Thanks Tom.
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e.j. 10:37 PM 04-06-2021
Originally Posted by TomCopeland:
PPP money received in 2020 is not taxable income. If it was included, file an amended tax return (Form 1040X) and get a refund.
I've read that some states (like my own - MA) do consider PPP loan money to be taxable income. Am I misunderstanding that or are you just talking about federal taxes?
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TomCopeland 08:49 AM 04-07-2021
Originally Posted by e.j.:
I've read that some states (like my own - MA) do consider PPP loan money to be taxable income. Am I misunderstanding that or are you just talking about federal taxes?
PPP is not taxable on your federal tax forms. Your state may or may not tax PPP money on their state tax forms.
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e.j. 08:55 AM 04-07-2021
Thanks for the clarification.
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grandmom 03:22 PM 04-09-2021
Apparently I pay my tax man the big bucks because he's smarter than me. They didn't include the PPP in my taxes. Whew.
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