willatbird
Level 5

Amending a 2021 partnership return for an ERC refund. I've entered the credit on the line under the salaries and wages "Less: Employee retention credit claimed on employment tax returns". This correctly reduced the wages on Page 1, but the program is ALSO adding a non-deductible expense on M-1 and M-2. This means the Partners' Capital Accounts are too low by the amount of the ERC. 

I've spend too much time on this so I'm hoping someone has a quick answer.

Thanks!

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willatbird
Level 5

Response from Lacerte Customer Service after a lot of time on hold -

There is a check box on screen 25 which asks if Schedule M-1 adjustments for refundable employment tax return credits Yes, or No (override).

That gets me where I need to be.

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