Get 50% OFF QuickBooks for 3 months*

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.
superbody
Level 1

hi how do I change and deposit from 2021 to an expense in 2021

how do I change and deposit from 2021 to an expense in 2021

2 Comments 2
Service
Level 6

hi how do I change and deposit from 2021 to an expense in 2021

So you entered a dollar amount as income, but it really was an expense, and this was in 2021, which is a couple of years ago?

 

How much $ are you talking about? I wouldn't bother if the amount is minimal, because doing the QBO change will take no effort compared to the expense of having to refile your taxes. In essence, you overstated your income, which no taxing authority would have a problem with, since you paid them more in tax than you needed to.

 

You have look at the relative cost compared to the benefit. 

 

Let's say that the amount in question is $500. The change in your gross income would be $1,000 if you change it from income to an expense. If you are at a 25% tax bracket, then you will get $250 back from the IRS. But if your accountant charges you $250 to refile your taxes, then there is no net benefit to you. 

 

But if your amount is more like $100k, then you get $25k back. Now we are talking bank, and I would go for it. 

 

I am just making up these numbers. You need to speak to your accountant about your specific case. If you don't have an accountant, Intuit has a web page where you can get referrals. 

CamelleT
QuickBooks Team

hi how do I change and deposit from 2021 to an expense in 2021

I've got the steps to change your deposit to an expense, superbody.

 

Just a heads up, I suggest you seek advice from your accountant since this change will impact the balance of your books, especially since this transaction was from 2021. 

 

For manually recorded transaction, we can recalssify the deposit if it's still in the For Review tab. Here's how:

 

  1. Go to Transactions, choose Bank transactions.
  2. Click the For Review tab.
  3. Find the transaction you want to change.
  4. Choose the appropriate expense account from the Category dropdown and hit Add.

 

When the transaction is already in the Reviewed tab, you'll have to undo it and categorize it to the right expense account. 

 

Additionally, visit this article to help you review your accounts and make sure they match your bank and credit card statement: Reconcile an account in QuickBooks Online.

 

Drop a reply below if you have further questions about reclassifying your transactions. I'll be here to assist you. Have a good one!

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us