When Is The ERC Tax Credit Deadline?

If you didn’t claim the Employee Retention Tax Credit, there’s still time.

However, there are important ERC deadlines to keep in mind to make sure that you get the credit you’re owed. Keep reading to learn more about the ERC tax credit deadlines you need to know so you don’t miss out on receiving your ERC refund.

What Is The Employee Retention Tax Credit? The Quick Answer

The Employee Retention Tax Credit (also known as the ERC or the ERTC) is a fully refundable tax credit that provided relief to small business owners during the Coronavirus pandemic. Businesses that kept employees on their payroll during the pandemic were allowed to claim the credit against employment taxes.

Can You Still Apply For the ERC In 2023?

Even though the ERC ended in 2021, eligible small business owners still have time to claim and apply for the ERC credit in 2023.

Businesses that didn’t previously claim the credit in 2020 and/or 2021 can claim the credit retroactively by filing an amended quarterly tax return using IRS Form 941-X. After the taxpayer files the form for each qualifying quarter, the IRS processes the return and issues a refund by check for the amount of the credit that is due to the business.

However, it is important to note that there are new ERC deadlines for filing these amended tax returns. Businesses that haven’t yet claimed the credit need to be aware of these deadlines so they don’t miss out on the money they are owed.

When Is The ERC Deadline For The Qualifying Period In 2020?

Businesses that didn’t file their claims on their quarterly tax returns in 2020 can fill out form 941-X and submit it to the IRS. The deadline for completing and submitting claims for 2020 ERC is April 15, 2024.

The qualifying period for ERC in 2020 is March 13, 2020, through December 31, 2020. Businesses that paid employees during this time period may be eligible to claim a credit for up to $5,000 per employee.

When Is The ERC Deadline For The Qualifying Period In 2021?

Businesses that didn’t claim the credits on their quarterly tax returns for 2021 can file amended returns to receive this credit as a refund. The deadline for completing and submitting claims for 2021 ERC is April 15, 2025.

The qualifying period for ERC in 2021 is January 1, 2021, through September 30, 2021, for most businesses. Businesses that are classified as recovery startup businesses may be eligible to claim ERC for Q4, which runs from October 1 through December 31. Businesses that paid wages to employees may be eligible to claim a credit of up to $28,000 per employee.

What Is The ERC Application Deadline For Third-Party ERC Companies?

Some business owners don’t have the time to navigate the complexities of filing amended quarterly tax returns. In many cases, these business owners choose to hire one of the best third-party ERC funding companies to handle their ERC claims. If your business opts to work with one of these companies, the timelines for submission may look a little different.

In most cases, an ERC company will need at least one week in order to verify your documentation, complete your amended return, obtain your signatures, and submit your claim to the IRS. However, many ERC companies may take several weeks or longer to properly complete and process your amended tax returns.

If you opt to work with a third party, it’s imperative that you don’t wait until the last minute. Make sure to discuss all deadlines, from submitting an application to providing your documentation for ERC calculations, so you don’t miss out on receiving your refund.

The Bottom Line On ERC Credit Deadlines

While there is still time to claim your ERC credit, don’t wait until the last minute.

There is plenty of work that goes into claiming your refund, such as determining if you qualify for ERC, gathering your documentation, calculating the amount of your ERC, and filling out Form 941-X, so make sure that you allow yourself enough time to complete these tasks.

Rushing around last minute can lead to errors that can result in processing delays or an inaccurate ERC refund, so don’t wait. Start the process as soon as possible to ensure that your return is postmarked by the IRS deadlines. Good luck!

FAQs: ERC Tax Credit Deadlines