Where to enter the Employee Retention Credit in ProConnect Tax

This article will help you enter the Employee Retention Credit on your client's income tax return in Intuit ProConnect. Although the credit is claimed on payroll filings (Form 944, 941, or equivalents), you may need to adjust amounts on the tax return to account for the credit claimed.

Partnership:

1. On the left-side menu, select Ordinary Income.
2. Click on the Deductions screen and scroll down to the Salaries and Wages subsection.
3. Enter the amount of Salaries and wages before any reduction.
4. Enter the credit as a positive number in Less: Employee retention credit claimed on employment tax returns.

The wage expense deduction on Form 1065, line 9 will be reduced by this amount. Nonconforming states will also subtract this amount on the state return.

S Corporate:

1. On the left-side menu, select Ordinary Income.
2. Click on the Deductions screen and scroll down to the Salaries and Wages subsection.
3. Enter the amount of Salaries and wages before any reduction.
4. Enter the credit as a positive number in Less: Employee retention credit claimed on employment tax returns.

The wage expense deduction on Form 1120S, line 8 will be reduced by this amount. Nonconforming states will also subtract this amount on the state return.

Corporate:

1. On the left-side menu, select Deductions.
2. Click to expand the Deductions section, and select the Deductions screen.
3. Scroll down to the Salaries and Wages subsection.
4. Enter the amount of Salaries & wages, other than officers before any reduction.
5. Enter the credit as a positive number in Less employee retention credit claimed on employment tax returns.

The wage expense deduction on Form 1120, line 13 will be reduced by this amount.

Individual returns

Schedule C:

1. On the left-side menu, select Income.
2. Click on Business Income (Sch C).
3. Select the Income Statement section along the top of your screen.
4. Scroll down to the Wages subsection.
5. Enter the Total wages before any reduction.
6. Enter the Employee retention credit claimed on employment tax return as a positive amount.

The wage expense deduction on Schedule C, line 26, will be reduced by the credit amount.

Schedule E:

1. On the left-side menu, select Income.
2. Click on Rental and Royalty Income (Sch E).
3. Select the Income Statement section along the top of your screen.
4. Enter the Wages and salaries before any reduction.
5. Enter the Employee retention credit claimed on employment tax return as a positive amount.

The wage expense deduction on Schedule E, line 26, will be reduced by the credit amount.

Schedule F:

1. On the left-side menu, select Income.
2. Click on Farm Income (Sch. F, 4835).
3. Select the Income Statement section along the top of your screen.
4. Scroll down to the Farm Expenses section.
5. Enter the Labor hired before any reduction.
6. Enter the Employee retention credit claimed on employment tax return as a positive amount.

The labor hired deduction on Schedule F, line 22, will be reduced by the credit amount.