As a completely unrelated side note, I noticed an interesting thing today in ProSeries on Form M1ED. I rarely need it, so I'm surprised I noticed.
The ProSeries screen say to ATTACH the receipts, versus prior years' forms say you need to HAVE the receipts (in case the state asks for them). I wasn't able to find the 2020 version of the form on the MN Revenue site, so I'm unsure if that is an actual change or if it is just a ProSeries text error.
Oh, I just found it. The actual form DOES now say to "attach" the receipts on Line 9 (but the instructions don't really mention that).
On another completely unrelated note (sorry for taking over your post), I don't understand Line 9 of the M1NC. Is that outdated or am I misreading it? It seems to say to subtract PPP expenses, which seems to be double-deducting expenses. Or am I just not thinking it through?
@TaxGuyBill - form M1NC is a plus or minus thing, so they want you to add back the forgiveness. As a side note, I received an e-mail this afternoon from our state society telling us to contact your local representative to encourage them to make the state law match the federal law on PPP.
As far as attaching slips go ------------------ I'll pretend I didn't see that ----------------- CAGMC.
Okay, so it is asking us to ADD the forgiveness there? That makes sense.
The Instructions for that line messed me up. I thought it was saying we need to enter a SUBRACTION for the PPP expenses, which didn't make any sense at all to me. But I still don't quite understand what the Instructions are trying to say. For Federal purposes, the expenses are deductible regardless if the loan is forgiven or not.
If you excluded loan forgiveness from your income under the Paycheck Protection Program on your federal return, subtract the expenses that would have been deductible if you had not received the loan forgiveness from the amount of the loan that was forgiven.