Question

Timing Differences

Forum|Forum|2 years ago
February 16, 2024
1 reply
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Turbo Tax (1120S) generated a timing issue in 2020 for the PPP forgiveness. It is still showing up on the M2 for each year since. Is it going to be there forever? Should I delete it?

This year we received ERTC income. Should that be recorded on the M2 as well? And where does it go?

TurboTax Business Windows

T

ThomasM125

It would depend on what column the PPP loan forgiveness is in on the schedule M-2, can you clarify for us? The employee retention credit income is not taxable in the current year, so it would be reported on line 16(b) of schedule K, other tax-exempt income. It would not appear on the schedule M-2. You may need to amend the returns for the years associated with the employee retention credit, as you may need to reduce your payroll expense in those years by the amount of the credit. You can learn more here: Employee Retention Credit

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