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The Employee Retention Credit (ERC) is a tax credit that is refundable and intended to encourage businesses to keep people on their payroll during difficult economic times. But a common question that arises is, "Is employee retention credit taxable income?"

Generally, the ERC is not considered taxable income at the federal level. However, it may affect your tax return in other ways. It's crucial to understand these implications to manage your business finances effectively.

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