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?

[sjrcpa]

Depends on the state.

[Mountain Accountant]

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]

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.

[qbteachmt]

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-cre...