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Correcting 941 Overpayment on QB Desktop 2019 version

I'm using QB Desktop 2019. In Q2 this year the 941 taxes were overpaid by $1k. I filed with the IRS to have the overpayment applied to the next return (so overpayment applies to Q3). Which means I owe $1k less in liabilities than QB is currently showing. How to I reconcile this in QB Desktop 2019? I found articles for the Online version... and for much older desktop versions. I need current info.


1 Comment 1
QuickBooks Team

Correcting 941 Overpayment on QB Desktop 2019 version

Hello there, @13155.


I have the steps on how to record the payroll liability overpayment in QuickBooks Desktop so you can proceed with your reconciliation seamlessly. I'm happy to share them with you!


Since you'll apply the overpayment to the next quarter's return, you have to apply it as a credit to a payroll tax account. If you're unsure of what particular account to use, you can talk with your accountant so the credit is applied in your tax forms accurately.


Here's how to apply for the tax credit:

  1. Create a liability check.
  2. Go to the Expenses tab and select the account where you want to apply for the credit.
  3. Enter the amount of the credit (only up to the amount of the check) as a negative figure in the Amount field.
  4. Enter an explanation of the transaction in the memo field.
  5. Select the Recalculate button to lower the amount of the check by the amount of the credit. If there is a credit balance remaining, you can apply it to the next period by repeating steps 1 through 4.

Once completed, you can now proceed with reconciling your account. For your guide, check out the details from this link: Reconcile an account in QuickBooks Desktop.


As you continue working with QuickBooks and payroll in the future, you can also read the topics from this article as your additional reference: Get started with Payroll.


Please let me know in the comment section if you have any follow-up concerns. I'm always here to help. Have a good day!

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