ERC taxable in California in 2020? - Spidell

ERC taxable in California in 2020?

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Message Board ERC taxable in California in 2020?

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    • #314713
      David Eurich
      Participant

      On the 2020 Federal S-Corporation return, we have to reduce the wage expense by the 2020 ERC credit. California does not conform to this so there’s no wage reduction on the California side.

      Do we have to include the 2020 ERC as taxable income on the California return? AB 80 only references PPP loans and SBA EIDL Advances.

      ANY info would be helpful, thanks.

       

    • #314721
      Lynn Freer
      Participant

      No you actually increase the CA wages by the amount that reduced the federal income for the ERC

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