I overpaid my Sales & Use Tax payment. How do I reconcile the refund? Quickbooks Desktop Pro

It's wonderful to have you here, Stephen.

Let me share how to handle and record a refund from the Wisconsin Department of Revenue.

If your bank and QuickBooks are linked, we can categorize the downloaded payment. Once it's added to QuickBooks, it will be cleared automatically. 

You can also input this as a deposit if you want to enter the refund manually. Then, I suggest consulting your accountant on how to classify the transaction.

Here's how:

1. On the Homepage, proceed to Record Deposits / Make Deposits.
2. In the Payments to Deposit window, choose the payments you want to combine. Then click OK.
3. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
4. Check the deposit total. 
5. Enter the date.
6. Add a memo as needed.
7. Lastly, click Save & Close.

Additionally, I'll be sharing this link to keep an accurate record of sales taxes: Refund sales tax collected from tax-exempt customers. This help easily monitors and remit them to the appropriate tax collecting agency.

If you have any additional queries about recording a refund in QuickBooks, please leave a remark. I'll make sure to respond to you right away. Have a good one!

Thank you for your reply.  To be clear, I do know how to make deposits (most are automatic with my bank being connected) but I am not sure how to categorize this particular deposit correctly.  It's not from a client or customer, but from a vendor.  If I manually add it I can do so in "Make Deposits," but then do I choose "Wisconsin Department of Revenue" as the "Vendor" and then enter a negative number in the "total" field?  And do I choose "Tax Expenses" as the "Account"?

Thank you!

-Stephen

Thanks for getting back to us, Stephen. 

Yes, you'll need to enter a negative number and use the same account when depositing to offset the tax payment. 

You can also run some sales tax reports to keep track of all your payables and payments. Please read through this article for more insights: Review sales tax reports.

I'd still suggest consulting your accountant to guide you on how to classify transactions.

I'm here if you need more help matching your deposits and accounts. Just click the Reply button below.