Don’t Miss This COVID-19 Sales Tax Credit | Business

Initially, businesses that received PPP loans were not eligible for an ERC, which may have contributed to the program’s less attention. The Taxpayer Certainty and Disaster Tax Relief Act changed the rules and retroactively expanded eligibility to include businesses with PPP loans. Unfortunately, many business owners and accountants may not be aware of this change.

The amount a business can claim varies over time and depends on eligible wages and the number of employees.For details and more information on ERC eligibility and how your potential credit is calculated, please visit IRS website.

claim your credit

If your business slows down during the pandemic, an ERC can provide the cash you need to get back to full speed. Businesses that employ one or two people in 2020 or 2021 can earn thousands of dollars in this tax credit.

It is wise to consult a tax professional before applying for an ERC, especially since your application needs to be submitted after the 2021 deadline. Eligible businesses filing taxes in 2020 or 2021 may be required to file an amended return.

For more information on ERC, please visit IRS website.

For informational/educational purposes only: The views expressed in this article may differ from those of other employees and divisions of JPMorgan Chase & Co. The views and strategies described may not be suitable for everyone and are not intended as specific advice/advice to any individual. Information comes from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. Before making any decision, you should carefully consider your needs and goals and consult with the appropriate professional. Outlook and past performance are no guarantee of future results. JPMorgan Chase & Co. and its affiliates do not provide tax, legal or accounting advice. Please consult your personal tax advisor on all tax-related matters.

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