Key insights
- On October 20, 2021, the Rhode Island Division of Taxation issued further guidance on tax treatment of PPP loan forgiveness amounts.
- Taxpayers must include 2020 PPP loan forgiveness amounts above $250,000 as income for tax purposes.
- Entities with 2020 PPP loan forgiveness amounts above $250,000 will receive a form to account for the forgiveness amount and calculate tax due.
- The form is due December 15, 2021.
Looking for help with PPP loan forgiveness and taxation?
The Rhode Island Division of Taxation (the Division) provided further guidance on the Rhode Island tax treatment of Paycheck Protection Program (PPP) loan forgiveness. Taxpayers must include 2020 PPP loan forgiveness amounts above $250,000 as income for tax purposes.
According to the new guidance, the Division has developed a form for reporting the amount by which PPP loan forgiveness for 2020 exceeds $250,000. Taxpayers can also use the forthcoming form to compute any tax due.
Payment is not due until March 31, 2022, but the form is due December 15, 2021.
Details and examples are included in the Division’s October 20, 2021 advisory notice, and the form is expected to post to the Division’s website soon.
How we can help
PPP loan forgiveness continues to be a hot topic for 2021. Regardless of your loan amount, our CLA team members’ in-depth knowledge can help you navigate the forgiveness and taxation process.