ERC received. Separation of wages and interest
View More DetailsClient received the ERC refund in 2024. I am amending the 2024 S-Corp return and will pass through to their personal returns.
My question is do I reduce the wages by the total amount received or do I separate the amount received less the interest received and put the interest under interest income?
With the information from Spidell's newsletters and podcast I received, seems that if I separate the interest I will be required to amend the CA return also.
What is everyone doing with the refunds?
Comments
Separate them. Interest is separately-stated on the K-1, so that's how you must report it.
With the IRS's latest guidance, everyone should be doing what you are doing.
