I received a refund from the IRS for overpayment of federal taxes. How do I enter the deposit in order to show the tax overpayment has been resolved?

Hi there, @timbercanyon.

To record the tax refund, you can use a bank deposit transaction and then use the expense account the same way when you pay your taxes. 

Here's how:

1. Go to the Hamburger icon and select the + New button.
2. Select Bank Deposit under the Other column.
3. In the Account field, select the bank account you want to deposit the funds.
4. Select the checkboxes of the transactions to deposit in the Select the payments included in this deposit.
5. In the Add funds to this deposit table, enter the name of the state agency the item was Received From.
6. Enter that expense account in the Account column.
7. Select Save and close.

Also, I recommend checking this article to more about this process: Record and make Bank Deposits in QuickBooks Online (QBO).

For future reference, you can check out this article about managing your sales tax in QBO: Sales tax in QuickBooks Online.

You can always drop me a comment below if you have any other questions. Take care.