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Hello I received a Sales Tax Overpayment Refund for Q1 and I'm curious as how to deposit it and what to code it to.
If I look at my sales tax liability for Q1 I'm in the negatives because I overpaid on prepayments, am I supposed to deposit this back into Sales Tax Payable so it evens out? Or does this throw off sales tax at all in any certain way.
I'm pretty sure that's the right way to do it but i'm not 100% sure.
Solved! Go to Solution.
You're on the right track, GFMBookkeeping.
I'd be happy to help share how to handle the sales tax overpayment refund in QuickBooks Desktop (QBDT).
You can use a bank deposit and use the expense account used when you pay your taxes. Here's how:
6. Once done, click Save and Close.
Additionally, I suggest seeking guidance from your accountant to ensure you make the correct sales tax adjustments in your Chart of Accounts.
You can always run your Sales Tax Liability report to review the taxes you owe and why you owe them. Just go to the Reports menu and choose Vendors & Payable, and select Sales Tax Liability.
Please consider checking these handy articles for additional information about handling sales tax: Process sales tax adjustment.
Let me know in the comments if you have other concerns about recording sales tax overpayments in QBDT. I'm always ready to help. Take care, and I wish you continued success.
You're on the right track, GFMBookkeeping.
I'd be happy to help share how to handle the sales tax overpayment refund in QuickBooks Desktop (QBDT).
You can use a bank deposit and use the expense account used when you pay your taxes. Here's how:
6. Once done, click Save and Close.
Additionally, I suggest seeking guidance from your accountant to ensure you make the correct sales tax adjustments in your Chart of Accounts.
You can always run your Sales Tax Liability report to review the taxes you owe and why you owe them. Just go to the Reports menu and choose Vendors & Payable, and select Sales Tax Liability.
Please consider checking these handy articles for additional information about handling sales tax: Process sales tax adjustment.
Let me know in the comments if you have other concerns about recording sales tax overpayments in QBDT. I'm always ready to help. Take care, and I wish you continued success.
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