Tom - PPP Post on Facebook Today

[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.

[TomCopeland]

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.

[Jo123ABC]

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.

[grandmom]

Thanks Tom.

[e.j.]

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?

[TomCopeland]

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.

[e.j.]

Thanks for the clarification.

[grandmom]

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.