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bgambrogi
Level 1

Do I categorize PERSONAL debits (ie. friend paying me back or returned purchase) as "Personal > Income > Returned Purchase", or as "Personal > Shopping"? Any difference?

I have a question about how to categorize personal non-income debits, such as returning a personal purchase, or even just a friend paying me back for dinner. for years, i've been categorizing these as "Personal > Income > Returned Purchase"; however, today I noticed that if categorize it as "Personal > Shopping" it changes my total income and expense numbers. is one or the other of these a better way to do this, and will the difference have any effect on my tax reports?

1 Comment 1
MoiraskyeT
QuickBooks Team

Do I categorize PERSONAL debits (ie. friend paying me back or returned purchase) as "Personal > Income > Returned Purchase", or as "Personal > Shopping"? Any difference?

Hi there, @bgambrogi

 

QuickBooks Self-Employed (QBSE) doesn’t have a specific category for a refund. At this time, you can record the original purchase as an expense and manually exclude it once it’s reimbursed or refunded to keep your financial records accurate.

 

If you require further guidance, we recommend consulting your accountant for assistance.

 

You can also check this article if you want to learn how to use a Schedule C form to report your income and expenses in QBSE.

 

If you have any further questions or require additional assistance, please add a comment below. We are here to help.

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