ERC credit from 941X to be entered into an amended 1120 Corporate return
View More DetailsI am looking for guidance as to what line item on form 941X to include on form 1120X. Line 18a - Non refundable portion of the employee retention credit, line 26a (refundable portion of employee retention credit, both of which are summarized on line 27 or line 30 the qualified wages for the employee retention credit. The only source that I could obtain was from the IRS which wasn't clear. Can anyone offer clarification?
Comments
I'm not clear why you are filing an 1120X. Are you attempting to amend the 2021 return for which the ERC was received? If so, it may be easier and less expensive for the client to claim the ERC refund as income or reduction of payroll in 2025 when the ERC was received.
Yes, I am attempting to amend the 2020 and 2021 for the ERC credit. I wasn't aware that it could be reported as income or a reduction of payroll on the 2025 return. If the prior years are amended which line(s) are to be considered from form 941X?
It's too late to amend 2020. The IRS will kick it back.
Probably the same for 2021 unless that was on extension.
You use the total amount of the credit that was claimed on the 941X
Unless 2020 was filed late. Not enough info to determine if out of statute of limitations.
