Amend 2020 for ERC
View More Detailsi recently found out that ERC income for federal purposes is tax free. My question is that for 2020 taxes, federal is locked because of time. / year.
is their any way we can amend the federal 2020 , or are we SOL
Comments
ERC is not tax-free. It is not really an income. It reduces payroll expenses, thus increasing your net taxable income. All you needed to do was to reduce your payroll expense by the amount of credit.
ERC is not tax free. However, we filed an amended 2020 return for the ERC quarters in 2020 (filed in 2024). The client received a notice back from the IRS indicating that the statute of limitations expired and the IRS will be returning the amount the taxpayer paid on the amended return. The taxpayer later received a check from the US Treasury for the refund of the amount paid.
