Hello there, @MelissaC.
Let me assist you with entering the tax refund to your organization in QuickBooks Online (QBO).
To do that, we can create a Bank Deposit for the payments and add another line for the tax credit portion.
Here's how:
- Go to the +New button.
- Select Bank Deposit.
- In the ACCOUNT field, select the bank account where you want to deposit the value.
- Tick the boxes of the transactions to deposit in the Select the payments included in this deposit.
- In the Received From column, enter the name of the state agency.
- Make sure to select an expense account in the ACCOUNT column.
- Once done, click Save and close.
On the other side, you'll want to enter the refund amount you've received from the IRS. Follow the steps below to do so:
- Navigate to Taxes and then Payroll Tax.
- Choose Resources.
- Click Add Payment after choosing Record Tax Payments.
- Enter the following information after selecting a tax type:
- Period Start Date and Period End Date - the period that the taxes were accrued
- Payment Date
- Check Number (optional)
- Notes (optional)
- Tax Item Amounts
5. Select OK.
For further details on managing sales tax, please take a look at these helpful articles:
If you have any additional queries, you can always return here. I'm here for you whenever you need me. Always be careful and safe.
