Accidentally Paid Sales tax twice by mistake

CS6 · ‎February 05, 2019

I accidentally paid my sales tax twice to the Department of Revenue. The send me back a refund check for this. How do I enter this into QuickBooks and Where?

Thank you!

IamjuViel · ‎February 06, 2019

Glad to hear again from you, @CS6.

Allow me to share additional information about creating sales tax adjustment. Let's get started.

When you paid your sales tax, the affected account in your Chart of Accounts is your Sales Tax Liability Account. Since you have overpaid your sales tax, then it will be fitting to record the adjustment to the same account being used when you made the payments. By doing so, you're clearing off any balance created on the Sales Tax Liability account when you made an over payment.

Also, I'd recommend consulting with your accountant for you to be guided properly in applying the sales tax adjustments to your Chart of Accounts.

Keep me posted on how things work on your end. I’m always here to help you manage your sales tax adjustments.

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AldrinS · ‎February 05, 2019

Hi there, CS6.

I'm happy to know that you were able to receive the refund for the sales tax payment. Let me walk you through the steps on how to record it in QuickBooks:

From the Banking menu, select Make Deposits.
Make sure the right bank account is entered in the Deposit To drop-down menu.
Select the right Date.
Enter the details in the following fields:
- Received From: Select the name of the agency where you received a refund from.
- From Account: Enter the appropriate account.
- Amount: Enter the total amount of the refund.
Click Save & Close.

I'm also including this helpful article for more information about handling sales tax in QuickBooks: Process sales tax adjustment

That should get you going in the right direction. Please don't hesitate to reach out to me again if there's anything else I can help you with. Have a great day!

CS6 · ‎February 06, 2019

Thank you so much for getting back to me on this. It is very much appreciated. The only other question I have is, what is the appropriate account to apply this too?

That is the only part I'm not sure on. And thank you also for the sales tax info. information.

Cheri

IamjuViel · ‎February 06, 2019

Glad to hear again from you, @CS6.

Allow me to share additional information about creating sales tax adjustment. Let's get started.

When you paid your sales tax, the affected account in your Chart of Accounts is your Sales Tax Liability Account. Since you have overpaid your sales tax, then it will be fitting to record the adjustment to the same account being used when you made the payments. By doing so, you're clearing off any balance created on the Sales Tax Liability account when you made an over payment.

Also, I'd recommend consulting with your accountant for you to be guided properly in applying the sales tax adjustments to your Chart of Accounts.

Keep me posted on how things work on your end. I’m always here to help you manage your sales tax adjustments.

View solution in original post

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Accidentally Paid Sales tax twice by mistake