Where to enter the Employee Retention Credit in ProSeries for tax years 2020 and 2021

This article will help you enter the Employee Retention Credit on your client's income tax return. 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.

The credit is available to eligible employers that paid qualified wages to some or all employees after March 12, 2020, and before January 1, 2022. This credit isn't applicable for tax year 2022, or newer returns.

Entering the Employee Retention Credit in a 1065 Partnership return:

1. Open Form 1065 p1-3.
2. Scroll down to the Salaries and Wages (less employment credits) Smart Worksheet.
3. Enter the employee retention credit on Line G, Other Credits.

Entering the Employee Retention Credit in a 1120S S Corporate return:

1. Open Form 1120S p1-2.
2. Scroll down to the Salaries and Wages (less employment credits) Smart Worksheet.
3. Enter the employee retention credit on Line G, Other Credits.

Entering the Employee Retention Credit in a 1120 Corporate return:

1. Open Form 1120, p1-2.
2. Scroll down to the Salaries and Wages Smart Worksheet.
3. Enter the employee retention credit on Line G, Other credits.

Entering the Employee Retention Credit in a 1040 Individual return:

To show the credit on the Schedule C:

1. Open the Schedule C.
2. Enter the amount on Line 26 Other Work Credits.

To show the credit on the Schedule E:

1. Open the Schedule E worksheet.
2. Enter a description and the amount on Line 19.

To show the credit on the Schedule F:

1. Open the Schedule F.
2. Enter the amount on Line 22, Other Work Credits.