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Entering the Employee Retention Credit

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Intuit

Entering the Employee Retention Credit

Before you start:

  • The IRS has released a Frequently Asked Questions page.
  • The Employee Retention Credit itself is claimed with the Employer's Quarterly Federal Tax Return. For details on claiming the credit see How to claim the Employee Retention Credit FAQ's.
  • Schedules C, E, and F will need adjustment to the Total Salaries and Wages line for any Employee Retention Credit claimed on Form 944 or Form 941.

Where do I make the adjustment for Schedule C?

Per the Schedule C instructions for line 26:

Also reduce your deduction by the nonrefundable and refundable portions of the new CARES
Act employee retention credit claimed on Form 944 or Form(s) 941 for your business employee.
Do not reduce your deduction for any portion of a credit that was passed through to you from a pass-through entity. See the instructions for the credit form for more information.

Tax ProductAdjustment Location
LacerteScreen 16 under the Expenses section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProConnect TaxBusiness Income Screen under the Income Statement section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProSeriesSchedule C line 26 on the Other Work Credits line.

Where do I make the adjustment for Schedule E?

Per the Schedule E instructions for Part I:

If you claimed the CARES Act employee retention credit on Form 944 or Form(s) 941 for
employees of your rental or royalty activities, reduce your deduction for wages by the nonrefundable and refundable portions of the credit.

Tax ProductAdjustment Location
LacerteScreen 18 under the Expenses section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProConnect TaxRental and Royalty Income Screen under the Income Statement section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProSeriesSchedule E worksheet line 19. Enter a description and the amount.

Where do I make the adjustment for Schedule F?

Per the Schedule F instructions for line 22:

Also reduce your deduction by the nonrefundable and refundable portions of the new CARES Act employee retention credit claimed on Form(s) 943 for your farming business employees.

Tax ProductAdjustment Location
LacerteScreen 19 under the Farm Expenses section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProConnect TaxFarm Income Screen under the Income Statement section on the Employee retention credit claimed on employment tax return (Form 941 or 944) line.
ProSeriesSchedule F line 22 on the Other Work Credits line.

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