How to record income tax returns refund in quick books?

I've got you covered, LT7.

I have just the steps that'll help you record the liability refund. The steps below will guide you through the process:

1. From the Employees menu, select Payroll Taxes and Liabilities, then Deposit Refund Liabilities.
2. Select the name of the vendor who submitted the refund check.
3. In the Refund Date field, enter the deposit date.
4. In the For Period Beginning field, enter the first day of the pay period that the refund affects.
5. Select how you want QuickBooks to handle the deposit:
   - Group with other Undeposited funds: Adds the amount in a holding account, which you can deposit to the right account later on.
   - Deposit To: Records the amount to the account of your choice.
6. In the Taxes and Liabilities section, select the payroll item affected by the refund.
7. In the corresponding Amount column, enter the refund amount.
8. Click OK.

All of this information and more is available in our guide on how to record a payroll liability refund check.

That should do it. With these resources, I'm confident you'll be able to record the CA-EDD refund check in QuickBooks like a pro in no time!

I hope this response finds you with a smile today. Let me know if there's anything else I can do for you, I want to make sure you're taken care of. Thanks for reaching out, wishing you and your business the best.

This is an error: "I set up a new vendor with a negative balance"

That means you added an Opening Balance? This is not AP.

You got a Tax refund and if that is Employer-Paid only, this is Income this year. Make Deposit.

@AldrinS

Please learn from this input; they didn't have Payroll and nothing here is Payroll function. They got it from the Prior year, which is not in this file as Payroll. There is no Payroll entry to make. That would make things worse, as you just affected Payroll.

Hi,

I have the same question, but more on step no 6, so which payroll item is affected for this EDD refund? I used to just deposit this by going through banking and make deposits, but I want to do the proper way of recording it. Is that okay? or should i just continue doing how i used to record it? I was able to follow the steps you suggested here, but I got stuck on step 6 and don't know the correct payroll item to choose. Please help me!

These steps are obsolete becuase QB keeps changing the menu around. There is no longer any menu item called "Employees" nor any longer anyplace to enter "deposit refund liabilities". It would be nice to get clear direction on how to record a tax refund for withholding accurately.