Hi larrysrsp,
You can record the refund as a deposit. I'm here to guide you through the steps. Before doing so, I recommend reaching out to your accountant so they can guide you accordingly in selecting the correct accounts.
Here's how:
- From the + New icon, select Bank deposit.
- Go to the Add funds to this deposit section.
- Select your state on the RECEIVED FROM field.
- Select the account.
- Enter the AMOUNT.
- Click Save and close.
Moreover, you can check this article as your guide in preparing to close your books for this year: Year-end checklist for QuickBooks Online Payroll.
Keep me posted whenever you have concerns about recording tax payments.