From N-2021-20
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Q 61. Does an eligible employer receiving an employee retention credit for qualified wages need to include any portion of the credit in income?
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A 61. No. An employer receiving a tax credit for qualified wages, including allocable qualified health plan expenses, does not include the credit in gross income for federal income tax purposes. Neither the portion of the credit that reduces the employer's applicable employment taxes, nor the refundable portion of the credit, is included in the employer's gross income.