Does TurboTax take into account Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021 for Leave After March 31, 2021?

[danielw11]

On the first point, when I filled out the questions, I recorded qualified sick leave ONLY for the period after March 31, 2021.  It was nonetheless listed on 1b.  This is a clear error in the system.  But I have fixed it manually.

On whether the amount of the credit needs to be reported as income, please look at the link I sent: https://www.irs.gov/pub/newsroom/fs-2022-15.pdf.  This is the IRS Fact Sheet for Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021 for Leave After March 31, 2021.  Question 70: "What amount does an Eligible Employer receiving tax credits for qualified leave wages (plus allocable qualified
health plan expenses, certain collectively bargained contributions, and the employer's share of social security and Medicare taxes imposed on the qualified leave wages) need to include in gross income?"  Answer: "An Eligible Employer must include the full amount of the credits received for qualified leave wages (plus allocable qualified health plan expenses, certain collectively bargained contributions, and the employer's share of social security and Medicare taxes imposed on the qualified leave wages) in gross income."

So I don't understand your saying the amount of the credits doesn't have to be included as income.  Can you please check with your legal experts?  Thanks.

[danielw11]

And here is the relevant statutory provision:

I.R.C. § 3131(f)(3) Denial Of Double Benefit — 

For purposes of chapter 1, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under sections 45A, 45P, 45S, 51, 3132, and 3134. In the case of any credit allowed under section 2301 of the CARES Act or section 41 with respect to wages taken into account under this section, the credit allowed under this section shall be reduced by the portion of the credit allowed under such section 2301 or section 41 which is attributable to such wages.