...An S Corp client received an ERC refund in 2025 and its not clear to me how to remove that income on the 100s return.  Does it go on line 12 "Other Deductions"? ...

...If an S Corporation has filed final returns, yet is issued ERC funds after being sold/closed, is it appropriate to simply claim the interest and other income on the sole shareholder's personal 2025 tax returns? ...

...I'm having trouble finding an authoritative source regarding the deductibility of third-party contingent fees for assisting in the application process to claim the employee retention credit.  Specifically, are the contingency fees charged by a third-party for processing the ERC deductible for CA? ...

...S-corporation received ERC refunds in 2023 and 2024 relating to tax year 2021.  S-corporation 2021 amended tax return was paper filed and sent to the client in February 2025 who held onto it until end of September 2025. (Lacerte could not e-file as it was too old.)  5 out of the 6 shareholders received a letter and a refund check stating that the tax year was closed and they could not accept the taxes.  The 6th shareholder received a refund but not a letter stating that the tax ye...

...I have a client that made employee retention credit claims for the 1st and 2nd quarters of 2021.  However, they only gave me the information to amend the 2021 returns for the 1st quarter application (amended 941), not the 2nd quarter.  I had no knowledge of the 2nd quarter 2021 941 having been amended for a retention credit claim. They received their 1st refund for the 2nd quarter 2021 claim in December 2025, much to my surprise and confusion.  Then they received the 2nd refund f...

...Partnership entity received ERC for 2020 and 2021 tax years but did not receive the payments until 2024 and 2025 so an amended return had not been prepared yet. Both partners are S-corporations. The partnership dissolved and filed a final return in 2022. Could we still file an AAR and have those adjustments be made in 2025, or can we report the income in 2024 and 2025 on both S-corp returns for the amounts received in those years even though the partnership no longer exists? ...

...I want to make sure I'm reporting ERC refunds correctly.  My understanding is we report refunds from 2020 Q2 through 2021 Q3 received in 2025 on the 2025 return (1120S in my case).  The credit is reported as "other income" instead of reducing wages expense and is taxable only to federal.  The interest received is reported as interest income and is taxable to both federal and CA. ...

...<p data-start="41" data-end="366">A client claimed ERC for 2020 and received the funds in 2023. They filed an amended return to reduce their wage expense for 2020. In 2024, the ERC claim for 2020 was disallowed, and the IRS assessed repayment. The client has made installment payments totaling $20,000, while the assessed liability is approximately $185,000.</p> <p data-start="368" data-end="750">According to the IRS FAQ, it seems the client can increase their wage expense on the...

...Confirming treatment of the ERC refunds received in 2025 for CA purposes.  Are these still considered nontaxable and therefore only need to include in federal income for 2025?  Before the March 2025 new process was announced we had amended previous client federal returns but did not adjust CA since they did not conform to the federal treatment at the time.  Looking for confirmation that this treatment has not changed.  Thank you. ...

...I may have been thinking too long about this one.  If we follow the IRS new guidance in the ERC FAQs updated in March 2025, we can treat an ERC refund received in the current year as "Other Income" on the tax return (assuming we have not previously amended returns to reduce wage expense). Treating ERC refund in current year as other income will increase the net income of the S-Corp this year and increase the Shareholder Basis.   This will result in an increase in the AAA account ...

...Taxpayers received ERC payments in 2023 for 2020 and 2021 tax years and reported the income as tax-exempt Income on the S-Corporation 2023 tax returns. We previously filed S-Corp amendments for 2020 and 2021 tax years to reduce related wages by ERC payments received. However, the personal 2020 and 2021 tax returns have not yet been amended. At this point, is it okay to amend 2020 and 2021 individual tax returns? or are we not allowed to and must amend 2023 tax returns to report the ERC Payment...

...I 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? ...

...<p>The taxpayer claimed the Employee Retention Credit (ERC) for 2021 and, in 2024, amended the 2021 tax return to reduce payroll wage deductions accordingly. Can the 2021 return now be amended again to reverse that adjustment, restoring the original wage deduction, and instead amend the 2024 return to report the ERC as income in the year it was received, in order to potentially reduce interest? </p><p>The SOL window stays open until September 2025.</p> ...

...Schedule C Client's old CPA  did amended returns when outside service processed 941x returns Client was caught in the delay and old CPA did second amended return because refunds didn't look like they were coming. IRS had questions and didn't process second 1040x In mean time IRS took from a 23 refund the amount due on 1st amendment Now client actually receives 2020 ERC first part of 2025 . Client wants us to refile the second amendment get a refund for the interest paid and then add th...

...Client received the ERC refund in 2024. I am amending the 2024 S-Corp return and will pass through to their personal returns. My question is do I reduce the wages by the total amount received or do I separate the amount received less the interest received and put the interest under interest income? With the information from Spidell's newsletters and podcast I received, seems that if I separate the interest I will be required to amend the CA return also. What is everyone doing with the refunds...

...If a taxpayer claimed an ERC refund in 2020 and amended the 2020 tax return to decrease the wage deduction, and in 2024 the IRS proposed a change to the ERC refund requiring the taxpayer to repay it, how should the ERC repayment in 2024 be treated on the Form 1120-S? ...

...Taxpayer received 2020 and 2021 ERC refunds in 2025.  Based on new process the ERC refunds will be reported as gross income on the 2025 tax returns. What about general business credit Form 5884-A Employee Retention?  Is this credit lost? ...

...-transcripts/podcast-are-erc-adjustments-required-on-the-california-return ...

...Client received ERC refunds in 2023 and 2024, both associated with 2021 payroll.  I was originally planning to amend 2021 to reflect the refunds. The new (3/20/25) IRS FAQ guidance indicates you "can" now include the income in the year received, rather than go back and amend the prior year return. I would prefer to amend just 2021 rather than both 2023 and 2024. My question is, is the 2021 tax year officially "closed" at this point? If so, I guess I'll be amending the 2023 and 2024 tax ye...

...Do I need to amend my client's 990 to reflect a wage adjustment due to the ERC? Do I report the ERC as a grant? I can't find any info on this topic. ...