Generally, the tax-exempt income resulting from the forgiveness of a PPP loan is reported on Schedule K, line 18b. To enter the tax-exempt income from the PPP loan:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Pass-Through Items subtab.

3. Under the “Items Affecting Shareholder Basis” header, click Review on the “Other tax-exempt income” line.

The program will automatically generate an adjustment on Schedule M-1, line 6 for the amount reported on Schedule K, line 18b. If you need to modify or eliminate the automatic M-1 adjustment:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Miscellaneous subtab.

3. Click Review on the “Schedule M-1 – Income Reconciliation” line and navigate through the interview until you reach the question labeled “Schedule M-1 – Other Income on Books”. Enter adjustment as negative amount.

The IRS requires a statement to be attached to Form 1065 for each tax year in which the partnership is applying the provisions of Revenue Procedure 2021-48. The statement will automatically be electronically filed with the return if the return is electronically filed. There is a printed copy of the statement included with a printed return as well. To complete this statement:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Miscellaneous Topics dropdown, then click PPP Loan Forgiveness Statement.

3. Continue with the interview process to enter all appropriate information.

Generally, the tax-exempt income resulting from the forgiveness of a PPP loan is reported on Schedule K, line 18b. To enter the tax-exempt income from the PPP loan:

1. From the left rail forms tree, select the form “Schedule K”.

2. Enter the appropriate amount on line 18b “Other tax-exempt income”.

The program will automatically generate an adjustment on Schedule M-1, line 6 for the amount reported on Schedule K, line 18b. If you need to modify or eliminate the automatic M-1 adjustment:

1. From the left rail forms tree, select the form “Schedule M-1 Reconciliation Worksheet”.

2. Enter the appropriate adjustment within a user entry field under the section labeled “Income recorded on books this year not included on Schedule K”.

The IRS requires a statement to be attached to Form 1065 for each tax year in which the partnership is applying the provisions of Revenue Procedure 2021-48. The statement will automatically be electronically filed with the return if the return is electronically filed. There is a printed copy of the statement included with a printed return as well. To complete this statement:

1. From the left rail, select “Schedule K” and scroll down to the Paycheck Protection Program (PPP) loan forgiveness reporting for line 18b section.

2. Enter all appropriate information.

Generally, the tax-exempt income resulting from the forgiveness of a PPP loan is reported on Schedule K, line 18b. To enter the tax-exempt income from the PPP loan in the TaxAct Business 1120-S program:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Pass-Through Items subtab.

3. Under the “Items Affecting Shareholder Basis” header, click Review on the “Other tax-exempt income” line.

The program will automatically generate an adjustment on Schedule M-1, line 5 for the amount reported on Schedule K, line 16b. If you need to modify or eliminate the automatic M-1 adjustment:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Miscellaneous subtab.

3. Click Review on the “Schedule M-1 – Income Reconciliation” line and navigate through the interview until you reach the question labeled “Schedule M-1 – Other Income on Books”. Enter adjustment as negative amount.

The IRS requires a statement to be attached to Form 1120-S for each tax year in which the partnership is applying the provisions of Revenue Procedure 2021-48. The statement will automatically be electronically filed with the return if the return is electronically filed. There is a printed copy of the statement included with a printed return as well. To complete this statement:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).

2. Click the Miscellaneous Topics dropdown, then click PPP Loan Forgiveness Statement.

3. Continue with the interview process to enter all appropriate information.

Generally, the tax-exempt income resulting from the forgiveness of a PPP loan is reported on Schedule K, line 16b. To enter the tax-exempt income from the PPP loan:

1. From the left rail forms tree, select the form “Schedule K”.

2. Enter the appropriate amount on line 16b “Other tax-exempt income”.

The program will automatically generate an adjustment on Schedule M-1, line 5 for the amount reported on Schedule K, line 16b. If you need to modify or eliminate the automatic M-1 adjustment:

1. From the left rail forms tree, select the form “Schedule M-1 Reconciliation Worksheet”.

2. Enter the appropriate adjustment within a user entry field under the section labeled “Income recorded on books this year not included on Schedule K”.

The IRS requires a statement to be attached to Form 1120-S for each tax year in which the corporation is applying the provisions of Revenue Procedure 2021-48. The statement will automatically be electronically filed with the return if the return is electronically filed. There is a printed copy of the statement included with a printed return as well. To complete this statement:

1. From the left rail, select “Schedule K” and scroll down to the Paycheck Protection Program (PPP) loan forgiveness reporting for line 16b section.

2. Enter all appropriate information.