Pp loan forgiven is being added back back to NJ S k-1 as income. is this correct?

[cpapeter]

The loan is fully forgiven and entered on the federal tax return. It appears as additional shareholder income in the NJ k-1 sub chapter S tax return

[sjrcpa]

And?

[goshen9882]

You ask if this is correct.  The answer is "no" based on the following:

https://www.state.nj.us/treasury/news/2021/02092021.shtml

[sjrcpa]

Good mind reading.

EDIT: I see OP added the question. It wasn't there when I first looked at this.