Client amended forms 941 for 2020 and 2021 to claim the ERC, resulting in a refund of $520,000 being received in 2023. I am trying to confirm the correct way to report this amount.

From what I can tell, this amount should not affect the 2023 return. It appears the 2020 and 2021 returns need to be amended to deduct the amount of the credit received in that year from the gross wages reported. For example, if the client originally reported $1,200,000 in gross wages in 2021, and received a refund of $400,000 as a result of the amended 941's from that year, 2021 should be amended to reflect $800,000 in gross wages paid.

Thank you all in advance, any and all help is greatly appreciated.