I believe you need to amend your prior returns to reflect the decrease in wages on line26 Schedule C. And then you don't report the credit income in the year you receive the ERC. I applied to the ERC in 2023 for certain quarters of 2020 and 2021, received the credit in 2023, and now have been informed that I need to amend the returns for 2020 and 2021 to show the lower wage deduction which then of course raises my taxable income and I now have to pay back taxes. Seems pretty cumbersome but I believe that is the route we need to take. If anyone knows differently please comment!
