ERC GO is a division of Frandsen Accounting

Back to All Categories
ERC AND TAXES

Do ERC refunds get taxed as income?

No, you do not have to include your ERC refund as part of your income taxes. Since it is a refund, it is essentially the government returning the money you overpaid in payroll taxes for the associated quarters.

However, you will need to have your tax preparer amend your income taxes to reflect any credits you do receive. Most businesses deduct employee wages as business expenses on their income taxes. If you receive those wages back as an ERC refund, they can no longer be counted as an expense.

DISCLAIMER: Here at ERC Go, we are not tax preparers or income tax professionals, and we do not offer tax advice. These statements are simply taken from the IRS's guidance about ERC credits and income taxes (see pg. 92, section L, question 60).


Step 1
Estimate your potential ERC credit
Potential credit amount

$0

*This is an estimate only based on the employee counts entered and does not represent a guarantee of the credit amount you will receive, or that you will qualify for the program.

ERC GO has already helped a staggering:

6,129

...businesses file their ERC claims...and counting!

The ERC helps businesses recover from COVID

What is the Employee Retention Credit program?

The Employee Retention Credit is an economic stimulus program for American businesses. With no limits on funding, your business could potentially receive thousands of dollars!