I haven’t filed my taxes… No problem!
When it comes to tax returns and tax credits, sometimes the actual tax code itself is far from the only thing that confuses business owners. While it is intimidating enough to go through the trouble of finding out if you qualify and documenting everything necessary to qualify; there are many other factors to consider. One question that keeps coming up recently is: What if I haven’t filed my taxes?
The short answer: Not a problem!
The longer answer…
It is important to keep in mind that payroll tax credits can be confusing at times. They are very different from tax returns or your day-to-day accounting. With that in mind, even some amazing CPAs or accountants can get a little turned around with this question. It is a completely different specialization so nobody can blame them!
So, you haven’t filed your 2020 taxes yet but you want to take advantage of the employee retention tax credit. No big deal! Payroll tax credits are processed by the payroll tax division of the IRS, not the income tax division. Still the IRS, but only remotely related! Your income taxes aren’t a qualifier for the employee retention tax credit (ERTC).
The primary qualifiers for the ERTC are:
Click on each qualifier above for more details.
Notice that none of these were related to income taxes? Click on each qualifier for a deeper dive and you will notice that there is no mention of your income taxes in any of these articles! You need to be able to document all of these things but income tax filings are required as evidence.
The process can be confusing, as well as the qualifiers, but I can assure you I have clients getting checks in the mail who haven’t filed income taxes yet. There is no reason that you can’t as well!
As a business owner, your job is to be an expert in your business. Don’t try to become an expert in tax credits, reach out to us and let us be your expert! We can make the complex very simple for you and we put a lifetime guarantee on all of our work!
For a layman’s guide to the employee retention tax credit check out our roadmap below:
Have questions that aren’t answered in the article or video? Book time with Brad today by clicking here!