Level 2

I have a S corp with the employee retention credit. I entered the credit in Lacerte Screen 15 Ordinary Deductions "Less: employee retention credit". It is reducing the wage expense on page 1, line 8. But it is also coming in on page 3 Schedule K as a non-deductible expense. Therefore, the Balance Sheet shows Retained Earnings is reduced again. The net effect is like the credit is reducing income twice. What am I missing?

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