Hi @MattKing,
The ERC is a refundable tax credit, and it is not added to your gross income when you file your federal income tax return. But even though your ERC refund is not added to your gross income, it will still impact your taxable income. This is because it will reduce the deduction you write off for wages and salaries. As an employer or business that receives the employee retention credit, you must reduce your payroll expense deduction by the amount of the ERC claimed. Here is a link that you may find helpful in answering your question: Employee Retention Credit FAQs
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