non-taxable carbon tax credit

Hi lgroleau,

Welcome to Community!   It's essential that you record the carbon tax credit accurately, in QuickBooks Online.  For this reason, I recommend speaking with an accounting professional. They'll be happy to provide their expertise and best course of action, to ensure a positive outcome on your books. If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

If you have any other questions, feel free to reach back out. We would be glad to help!

Hi Trish,

Thank you, but it does not answer the question. Is the ProAdvisor a paid function of QB? In other words I look up a ProAdvisor, they provide me the answer to my question and I pay them for their support?

Sincerely,

Louise

Hi Igroleau,

I just received by carbon tax rebate also.  How did you end up recording the transaction?

Thanks

Steve

Well, so when I couldn't get an answer from the community, other then "ask your accountant", I received it into my bank, and debited my director PUC. I know the money didn't come from me, but since I couldn't get a straight answer, this was the best I could come up with. Besides, if you think about it, if I had an accountant, do you think I would have asked the community in the first place?

Did you ever get an answer? 
I am faced with the same situation.

No, I am still working on it. For now, I put it in the bank as if I gave the money to my company.

This is what I did:

I had this situation back in December.

My accounting suggested I enter it like a deposit.

So under the "Received from" we put the CRA "From Account" we created a Miscellaneous Income" 

That's the kicker. If you put it in Miscellaneous Income, you will pay taxes on it. This is non-taxable income.

Exactly my dilemma as well.  I put it in as income and labelled it Canada Carbon Rebate so it is separate from my sales.  Hopefully my accountant that does my corporate taxes won't put it on my taxes but you have to enter it as income in your books so you will balance.

I'm a CPA and it's frustrating to see the canned responses from Quickbooks support such as contact a professional accountant (which you may have to pay for) or read the attached article.

The carbon rebate is income, just not taxable income.  Your bank and other users will want to see it as income.  It is similar to non-deductible expenses such as golf, CRA penalties or 50% of meals.  Your tax preparer will remove the income to arrive at taxable income when your tax return is prepared, but nonetheless it is income on your financial statements

The solution is to open a revenue account called "Non Taxable Revenue" and post it there via a bank deposit. Because most companies only have a few revenue accounts, its unlikely to get missed at tax time.  In addtion, most tax preparers know about it and should have it on their checklists to remove when preparing taxes