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Level 3
March 15, 2026

941 taxes refund for 2021

  • March 15, 2026
  • 1 reply
  • 5 views

S-Corporation received $65,000+ refund in 2025 for 2020, 2021 payroll taxes paid. 

1)  I have read that it should not include the employee portion of SS/Medicare.  Is that true? 

 

2)  Is the employer portion of the refund fully taxable?  If so, am I correct in reporting as "other income" on Schedule K

 

I have not received a full breakdown from the customer, but I assume it will include some taxable interest and should also be reported on schedule K?

    1 reply

    sjrcpa
    Level 15
    March 15, 2026

    If this is ERC there is no employee withholding. And yes there is interest income, too.

    The more I know the more I don’t know.
    Level 3
    March 16, 2026

    Thank you,

    I am checking on the ERC question.