Hello LenaH,
Thanks for sharing. I found this info, too, on the IRS website. I have two follow-up questions: 1) It appears that the credit should be recorded on a company tax return in such as way as to REDUCE company expenses, equal to the amount of the ERC credit, thus having the effect of increasing taxable income, correct?
2) I am using turbotax for business (S-Corp) and filing an 1120S. I expected the tax software to prompt me with a question, "Did you receive any ERTC?" But it did not. Where, then, should the credit be recorded? It didn't make sense for me to reduce the wages paid during the year, mostly because there is a warning that the wages reported must equal what's on the filed 941's. There was also no where to post the credit as a deduction. Therefore, I just added it under "Other deductions - Line 19 on 1120S," and entered the value as a negative number, thus reducing all the other deductions. Does this sound correct to you? Can you offer an explanation why the Turbo Tax software wasn't more specific on where to record the credit? Or, am I off completely, and I'm not supposed to report the received credits on my 1120S? Bottom line: Where does this credit go?
