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goalaccounting
Level 1

could you help me, I have a refund from the CRA for HST that the CRA paid interest on the amount I owed . Please advise me on how to file it correctly?

could you help me, CRA paid interest on the amount I owed . how to file it correctly?

1 Comment 1
LouiseG
QuickBooks Team

could you help me, I have a refund from the CRA for HST that the CRA paid interest on the amount I owed . Please advise me on how to file it correctly?

Hi there, Goal. 

You can record the refund paid by the CRA in QuickBooks Online (QBO). Here’s how you can properly record it:

If the CRA refund shows up in your connected bank account in QBO, categorize it as a tax refund. 

Here’s how:
 

  1. Go to the Accounting section.
  2. Select Bank Transactions.
  3. Locate the refund transaction, and categorize it under your HST/GST Payable account.
     

After that, create an income account for the interest. Once that's set up, here’s how to record the interest payment:
 

  1. Click on + Create, then select Bank Deposit.
  2. Record the deposit into your business bank account.
  3. Categorize it under the new income account you just set up.
     

If you have additional questions, don’t hesitate to click the Reply button below.

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