diag #56719 - how to enter PPP non-deductible exp for CA for 2021

[detaylorcpa]

If I enter them in screen 13 - expense non-deductible to state related to a forgiven PPP loan (as we did in 2020) I get the above critical diag and it brings me to screen 44.011 - taxable SBA and other loans/grants. If I enter in screen 44.011 - it throws my CA balance sheet out of balance.

[Karl]

Which module are you in?  S-Corp?

Try play with inputting it in Screen 31.1, there's a forgiven PPP loan book-non-tax override field there.

Admittedly, I haven't even started populating any of my S-Corps yet.  Too war-scarred from all the software changes as we went along last year that would change my work.  Waiting a little longer for them to make up their minds...

[Drphibes]

And watch out for PPP loans made after 3/31/21 and then forgiven.  CA did not conform to the Federal extension of those loans as being non-taxable relief of debt.

[detaylorcpa]

Thanks for the help - although, alas - none of it did help. The answer I came up with is: enter PPP loan and expenses non-deductible for CA in screen 13 - this makes fed and CA come out correctly. However, I get the critical diag: #56719 - which isn't an issue in my case. It didn't stop me from efiling - unless it comes back to me. I'm guessing this should be an informational diag and not critical.