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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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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.