ERC: Your Top Questions Answered

November 16, 2023

What’s a tax credit? Will it expire? 

A tax credit is a reduction in the total taxes owed to the IRS. It’s not a deduction and doesn’t affect your taxable income. Once approved, you’ll never be on the hook for it later. There’s no guarantee that the ERC will be permanent.

I want to apply, but my CPA says I don’t qualify. What should I do?

No disrespect to your CPA, but the ERC laws are complicated and have recently been updated; something we’re finding out many CPAs don’t know. It’s why we recommend our partner Adesso to our members who want to file for the ERC. Their team of experts specialize in the ERC and know how to get your application through with the max refund possible.

“Free” money back from the IRS? Why does this sound too good to be true?

This is the #1 reason business owners skip filing for the ERC, and we get it! When has it ever been easy to ask the IRS for a refund, and what’s the catch?

The reasoning for giving money back is, well, complex. The best way to put it is: The federal government has an incentive to ensure businesses affected by COVID restrictions stay open. Small businesses like yours are vital to the local and national economies, so they’re willing to budge on what you owe them. However, the ERC isn’t permanent, and we expect the opportunity to apply will expire soon.

We’ve seen them get back an average of $150,000 in tax credits for our members. Isn’t it worth seeing if you qualify? It only takes 3 minutes to see if you qualify.  Click here to take Adesso’s Qualification Quiz. (update with your partner page URL) 

I took a PPP loan, does that mean I can’t get the ERC?

There’s a lot of misinformation about this which is why you should talk to an ERC tax specialist first. Previously, it used to be the case that you got one or the other. Luckily, this isn’t true any more thanks to changes in the CARES Act. You can still qualify for the ERC even if you’ve already received federal funds like a PPP loan.

What is it I need to qualify?

We’ve created a handy one-sheet that guides you through the things you’ll need as you're filling out your online application. (update with your partner page URL) NOTE: we can provide you a customized one-sheet if you’d like! 🙂

How much can I get back?

You can qualify for up to $26,000 per employee, but we’ve seen members who work with Adesso get back up to $150,000. Adesso gets back an average of $150,000 in tax credits for their clients. Isn’t it worth seeing if you qualify? It only takes 3 minutes to check your eligibility.

I’ve already filed my payroll taxes for 2020 and 2021. Can I still get the ERC?

The ERC is a retroactive tax credit, so you can qualify! You may get a refund or a credit on your next tax bill, depending on the case. Talk to one of the experts at Adesso to see which options you have.

What other questions do you have about the ERC? 

We’ve created a landing page that goes into more detail about the ERC and in just 3 min you can find out how much you're eligible for. (update with your partner page URL)

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