Initially, companies that obtained PPP loans weren’t eligible for the ERC, which could have been why this system obtained much less consideration. The Taxpayer Certainty and Catastrophe Tax Aid Act modified the foundations and retroactively broadened eligibility, together with for companies that obtained PPP loans. Sadly, many enterprise homeowners and accountants could also be unaware of this alteration.
How a lot a enterprise can declare has modified over time and relies on eligible wages and variety of workers. For full particulars and extra data on ERC eligibility and learn how to calculate your potential credit score, go to the IRS website.
Declare your credit score
If your enterprise slowed through the pandemic, the ERC might provide the money you have to get again to full pace. Companies that employed even one or two individuals in 2020 or 2021 might obtain hundreds of {dollars} via this tax credit score.
It’s sensible to seek the advice of a tax skilled earlier than claiming the ERC, particularly since your declare would should be filed after the deadline for 2021. Eligible companies that filed their taxes for 2020 or 2021 might must file amended returns.
For extra details about the ERC, go to the IRS website.
For informational/instructional functions solely: The opinions expressed on this article might differ from these of different workers and departments of JPMorgan Chase & Co. Opinions and methods described will not be acceptable for everybody and should not supposed as particular recommendation/suggestion for any particular person. Data has been obtained from sources believed to be dependable, however JPMorgan Chase & Co. or its associates and/or subsidiaries don’t warrant its completeness or accuracy. It is best to rigorously contemplate your wants and targets earlier than making any choices and seek the advice of the suitable skilled(s). Outlooks and previous efficiency should not ensures of future outcomes. JPMorgan Chase & Co. and its associates don’t present tax, authorized or accounting recommendation. Please seek the advice of along with your private tax advisor on all tax-related issues.
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