looking for filing advice on retention credit on tax return

[WITAXLADY]

went to a tax class that said the IRS wants the retention credit wages to offset wages, soc sec, medicare etc to offset that as well.

First negative numbers do not work on ATX at all.

second - how can you show negative soc sec 

third - another article states it is like a grant so it is other income

But if IRS is looking for it as adjusted wages - K-1 will not match wages under officer comp and W-2?

and wages will not match W-3 nor 940, 941's??

 

anyone have a better or correct way?

Thank you

Darlene

 

[KATHERINE]

Hi Darlene,

What I do is: make adjustment entry , use the refundable credit reduce wages expenses; use the non refundable one to reduce FICA tax cost, then carry the net to tax return.  I think that is what IRS wants us to do too. 

so the tax return wages may not match with W3 which is ok.

Thank you!

Kate

 

[WITAXLADY]

it is so simple!!

Sch F- wages - 2 f -  subtract off labor, I imagine it is similar on Sch C wages

no soc sec med adjustment as those were paid in full.. only wage adjustment

d