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Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021 for Leave After March 31 2021 FAQ 70. If you filed Form 941-X to claim the Employee Retention Credit you must reduce your deduction for wages by the amount of the credit and you may need to amend your income tax return eg Forms 1040 1065 1120 etc to reflect that reduced deduction.
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If leave was taken and not paid in a prior quarter but the business went back and paid the employee after September 30 2021 then the credit can be reported on the 4th quarter Form 941 Employers Quarterly Federal Tax Return for.
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