Author Topic: IRS Tax Credits Available for Business (FFCRA and ERTC)  (Read 3810 times)

Offline dovy2

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2012
  • Posts: 2127
  • Total likes: 137
  • DansDeals.com Hat Tips 24
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #20 on: December 12, 2021, 08:28:54 PM »
Anyone who file amended refunds see anything yet?

Offline gozalim

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Oct 2008
  • Posts: 4084
  • Total likes: 614
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #21 on: January 25, 2022, 05:26:51 AM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Does it require equivalent amount of sick leave taken on W2 ?

What documentation of leave is required for self employed filing?
« Last Edit: January 25, 2022, 05:31:01 AM by gozalim »

Offline gozalim

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Oct 2008
  • Posts: 4084
  • Total likes: 614
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #22 on: January 27, 2022, 02:00:54 PM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Does it require equivalent amount of sick leave taken on W2 ?

What documentation of leave is required for self employed filing?
should this question be addressed to @cgr ?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #23 on: January 27, 2022, 03:38:11 PM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Yes

Does it require equivalent amount of sick leave taken on W2 ?
No, although if FFCRA is taken across multiple jobs and/or W2 + 1099, then the individual is capped at the $12k maximum across all source of income/employers, and not $12k per employer/income source.

What documentation of leave is required for self employed filing?
No official docs, but if the reason is for an order of quarantine, document the name of the healthcare provider. If the reason is for childcare, document the name of the child and the name of the school. Keep these for a period of 4 years in case of audit.

(thanks for bringing the question to my attention- I saw it a few days back and was going to check up on some details, and it slipped my mind).

Offline gozalim

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Oct 2008
  • Posts: 4084
  • Total likes: 614
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #24 on: January 27, 2022, 03:44:41 PM »
@ExGingi this deduction might resolve some of your questions

Offline gozalim

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Oct 2008
  • Posts: 4084
  • Total likes: 614
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #25 on: January 27, 2022, 03:49:49 PM »
No, although if FFCRA is taken across multiple jobs and/or W2 + 1099, then the individual is capped at the $12k maximum across all source of income/employers, and not $12k per employer/income source.
(thanks for bringing the question to my attention- I saw it a few days back and was going to check up on some details, and it slipped my mind).
meaning, can I take off a week from my side job (for childcare or whatever) on a week that my paystub was not deducted?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #26 on: January 27, 2022, 04:12:10 PM »
meaning, can I take off a week from my side job (for childcare or whatever) on a week that my paystub was not deducted?
While it's not specifically addressed by the IRS the answer for 2021 is definitely yes since FFCRA is optional for employers in 2021. (And regardless it's not specifically precluded).

Offline Fish Tank

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Feb 2012
  • Posts: 782
  • Total likes: 94
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NJ
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #27 on: February 16, 2022, 02:20:40 PM »
I had an employee for the first quarter of 2020. Am I eligible for the ERTC credit?



Offline Fish Tank

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Feb 2012
  • Posts: 782
  • Total likes: 94
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NJ
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #28 on: February 16, 2022, 02:21:08 PM »
You cannot claim ERTC if you received a PPP loan.
Is this still accurate?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #29 on: February 16, 2022, 02:25:22 PM »
Is this still accurate?
No, although you can't use the same dollars for ERTC and PPP forgiveness

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #30 on: February 16, 2022, 02:27:46 PM »
I had an employee for the first quarter of 2020. Am I eligible for the ERTC credit?
ERTC started in mid-March so even if you qualify (lots of eligibility criteria) it would be for 2 weeks at most.

Offline Fish Tank

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Feb 2012
  • Posts: 782
  • Total likes: 94
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NJ
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #31 on: February 16, 2022, 02:31:04 PM »
No, although you can't use the same dollars for ERTC and PPP forgiveness
ERTC started in mid-March so even if you qualify (lots of eligibility criteria) it would be for 2 weeks at most.
Thank you !

Offline dovy2

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2012
  • Posts: 2127
  • Total likes: 137
  • DansDeals.com Hat Tips 24
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #32 on: February 17, 2022, 02:54:55 PM »
@cgr
I understand they suspended the program for q4 2021.
regarding the prior-quarter comparison thingy,
Am I able to calculate the 20% loss using Q4 2021 income against Q3 of 2019?
(otherwise I dont have any 20% loss in any other quarter)

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #33 on: February 17, 2022, 03:10:24 PM »
@cgr
I understand they suspended the program for q4 2021.
regarding the prior-quarter comparison thingy,
Am I able to calculate the 20% loss using Q4 2021 income against Q3 of 2019?
(otherwise I dont have any 20% loss in any other quarter)
The prior quarter comparison only works for the quarter you're looking to qualify for, and it still requires the same quarters to be compared. For example: you're looking to qualify in Q3 2021. You can compare Q3 2021 to Q3 2019 (same quarter comparison) or Q2 2021 to Q2 2019 (prior quarter comparison)- you cannot compare Q3 2021 to Q2 2019 or vice versa.
Bottom line: if you qualify for ERTC you will always qualify for a minimum of 2 quarters.

Offline TBD

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 1177
  • Total likes: 160
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #34 on: June 23, 2022, 08:54:39 PM »
Is a S corp owner and spouse eligible for FFCRA credits for their w-2 wages or there is the same limits as ERTC?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #35 on: June 24, 2022, 03:04:29 AM »
Is a S corp owner and spouse eligible for FFCRA credits for their w-2 wages or there is the same limits as ERTC?
FFCRA is available to anyone paying self-employment tax (so Sch C, 1065 active income, and wages), including owners and family. It can't be taken for the same wages as PPP or ERC.

Offline shulemw

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Mar 2012
  • Posts: 385
  • Total likes: 31
  • DansDeals.com Hat Tips 0
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #36 on: July 04, 2022, 03:11:38 PM »
Who is considered a owner for a non profit and his wages can not be counted?
Also a non profit that has 2 separate entities are they being aggregated as one or non profits are each a separate entity?
@cgr or anyone else that knows. Thanks

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 3953
  • Total likes: 1037
  • DansDeals.com Hat Tips 5
    • View Profile
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #37 on: July 05, 2022, 11:03:16 AM »
Who is considered a owner for a non profit and his wages can not be counted?
Also a non profit that has 2 separate entities are they being aggregated as one or non profits are each a separate entity?
@cgr or anyone else that knows. Thanks
Generally there are no owners when it comes to non-profits, but the rules for ERTC is very complicated for religious non-profits, and many don't qualify (especially if they don't pay FICA tax).
ERTC affiliation rules aren't about management, they're about ownership only, so there shouldn't be any affiliation rules applicable to a non-profit. That being said I did not do a deep dive on the specifics (experts routinely charge as much as 20% for affiliation studies when it comes to ERTC), so don't take this as legal advice.

Offline TBD

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 1177
  • Total likes: 160
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #38 on: July 05, 2022, 08:57:44 PM »
Also a non profit that has 2 separate entities are they being aggregated as one or non profits are each a separate entity?
@cgr or anyone else that knows. Thanks

What does it mean 2 entities? Are they both under the same TAx ID? Than it's probably considered same ownership also

ERTC affiliation rules aren't about management, they're about ownership only, so there shouldn't be any affiliation rules applicable to a non-profit. That being said I did not do a deep dive on the specifics (experts routinely charge as much as 20% for affiliation studies when it comes to ERTC), so don't take this as legal advice.
Under section 414(m) of the Code, an “affiliated service group” is treated as a single employer based on rules related to the performance of services by one entity for another or by one entity in association with another for third parties, even if the entity does not have sufficient ownership or control of the other entity to form a controlled group.

https://www.twrblog.com/2020/04/irs-faqs-on-retention-credit-highlight-aggregation-concerns-and-narrow-potential-eligibility/
If most of the activities from 1 entity is only with the other entity than it could fall under the rule even if not the same ownership.