Does the ERTC, that is refunded to the taxpayer, have to be included as income to the St, as well as the Fed, when Amending returns?

Forum|Forum|3 years ago
January 6, 2023
2 replies
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sjrcpa

Level 15

Depends on the state.

The more I know the more I don’t know.

M

Mountain AccountantAuthor

Level 3

Specifically, CA.

Beginning with a large ERTC refund from The Treasury Dept. for an S-Corp., prepared Amended returns to tax income created by the credit by Amending Fed/St S-Corp returns as well as 1040/540 personal income tax returns.

Was just informed that the client is not required to Amend the Ca State 100 S-Corp or the Ca State 540 personal.

Is this correct and can you provide me a Link stating so?

abctax55

Level 15

It's an adjustment to the expense on the Federal return only and an M-1 (I think???) adjustment on the CA return. No impact to the CA income figures.

I'll let you look for a link. Try Spidell's website for a zillion questions/answers from when this first started.

HumanKind... Be Both

qbteachmt

Level 15

I've had this bookmarked:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

And they have been updating it for the CA bills.

You can search the web for ProSeries articles, such as:

https://proconnect.intuit.com/support/en-us/help-article/salaries-wages/enter-employee-retention-credit-proseries/L9Xm7ZgHR_US_en_US?uid=lcm7bwar

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