I'm having the same issue. No one seems to be addressing this in the thread. I received the ERC in 2022 for the years 2020 and 2021. Once I received this amount, I had to amend my 2020 and 2021 tax returns to reflect the decrease in payroll tax expense, therefore, increasing my income. By amending my returns, I have accounted for the decrease in my expenses for those tax years.
However, in my book currently, the amount deposited in 2022 is now seen as income in 2022. How do I rectify this? I need to zero out these deposits which are currently showing as income. These deposits are affecting my P&L and balance sheet for 2022. I'm thinking of journal entry but do not have a clue on which account to post to.
