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Critical Diagnostic

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Level 1

What is the best way to manually reduce salaries and wages on Form 1120S for the Increasing Research Credit?

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4 Replies 4
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Level 15

Reasonable wages are supposed to be established and paid.  What is to be paid as wages should be documented and not monkeyed around after the fact to play games with numbers.

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Still an AllStar
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OP is asking about the need to reduce the wage line for the nondeductible portion due to having received a credit for those wages.

 

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By entering a smaller number on the wages and salaries input. You'll also need a Schedule M entry for the book-tax difference.

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Level 1

Thanks PhoebeRoberts.  I was hoping to add a notation to the Form 1120S Line item that is reduced.  Lacerte has a way to do this, but I have been unable to find a way within ProConnect.  

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