How Will PPP Loans & EIDL Advances Affect My 2020 Taxes?

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Another loan you might have taken benefit of throughout the COVID-19 pandemic is the Economic Injury Disaster Loan, or EIDL. If you received the EIDL loan, taxes on these funds work like any other loan taxation. The IRS may also examine all other loans, so it is best to be prepared, even if you got a much smaller loan.

Another loan you might have taken advantage of during the COVID-19 pandemic is the Economic Injury Disaster Loan, or EIDL. If you got the EIDL loan, taxes on these funds work like any other loan taxation. Loans that are less than $2 million are subject to an audit, and it has been reported that much lower loans have actually been scrutinized. Can I use my PPP loan to pay service taxes? The IRS might likewise audit all other loans, so it is best to be prepared, even if you got a much smaller sized loan.

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