“Surprise! PPP Loan Forgiveness May Not Be Tax-Free For Everyone,” Forbes
In an article published in Forbes on May 3, 2021, Christina Moore was quoted discussing the Paycheck Protection Program (PPP) and how loan forgiveness may not be tax-free for everyone.
The article and Moore advise that it’s important to watch out for state taxes on PPP loans, as your state may still force you to pay income taxes on forgiven PPP loan amounts, which could be substantial depending on how much you were awarded. Additionally, some states are still making changes in terms of tax treatment for PPP loans.
Moore recommends business owners "familiarize themselves with the applicable state position on PPP loans and ensure they are tracking any active legislation or watching for any proposed legislation."
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