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Tax Refunds

TODavid69TODavid69 Member Posts: 15

I entered the wrong info when I paid taxes and actually overpaid. I submitted 3 amended returns for my quarterly taxes in TX and received a refund. Unfortunately, they did not send me three separate ones, they just sent me a lump sum. How do I enter that (more than likely via journal entries) so that it does not show up as a tax credit and I have to pay taxes on that for this current quarter?

edited February 16, 2021 in Accounting Technical Support

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @TODavid69 , I think that how you enter this in could definitely vary, but if you add an income transaction and categorize it as "Refund for expense" it won't count it towards your income. This would be my suggestion on how to categorize it appropriately.

  • TODavid69TODavid69 Member Posts: 15

    I tried to do that but nothing is coming up as a refund for expenses under Sales Tax. It automatically categorizes it as income.

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Got it @TODavid69 , thanks for confirming. In that case, you can create a Journal Transaction in the specific amount, debiting your bank account and crediting the sales tax.

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