Different Schedule C for Fed and State

Forum|Forum|5 years ago
November 19, 2020
7 replies
38 views

Is it possible to prepare a different Schedule C for Fed than State?

Under MA rules about PPP, the treatment of the forgiven loan is different than the IRS rules.

Under IRS rules, the forgiveness amount is not included in income, and the expenses used for forgiveness excluded also.

Under MA rules (TIR 20-9), the forgiveness amount IS included in income, and the expenses used for forgiveness are INCLUDED.

Can we use ProSeries to prepare the Schedule C for Fed differently than the Schedule C for MA?

Thank you.

ProSeries Professional

This topic has been closed for replies.

T

TaxGuyBill

Unless MA comes out with a state-specific Schedule C, I think the only way you can do it is to prepare the Federal. File the Federal. Then change the Schedule C to file State.

Maybe I'm missing something, but I think that MA rule is rather odd. Won't it have the same result as the Federal way?

itonewbie

Level 15

MA is odd because Massachusetts General Laws has a static conformity date of Jan 1, 2005 for personal income tax, unless otherwise stated, but rolling conformity for corporate tax, unless otherwise excepted. These are the causes for disparities between the treatments of the same items depending on whether the taxpayer is an individual or a body corporate.

---------------------------------------------------------------------------------Still an AllStar

H

HudsonCPAAuthor

Level 2

To Itonewbie,

Thanks for your response.

The TIR actually cites those conformity dates as the reasons for MA treatment of PPP issues.

Thanks again.

BobKamman

Level 15

Line 6a of the Massachusetts Form 1 instructions ask for a copy of Schedule C. Line 6b asks for a copy of U.S. Schedule F. To me this indicates they plan on issuing their own Schedule C. And indeed, for 2019 they had their own Schedule C.

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