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Level 3
April 5, 2022
Question

Where do I put the ERTC tax credit in Proseries 1120S tax return?

  • April 5, 2022
  • 1 reply
  • 7 views
My client received money back for the 941 ERTC tax credits.  They deposited the money and used it to make payroll.  On the 1120S tax return where do I show this money?
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1 reply

sjrcpa
Level 15
April 5, 2022

You reduce the wages expense.

But, if this credit was for 2020 wages, you have to go back and amend the 2020 return and reduce 2020 wage expense.

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