Level 1

How to record direct deposit from state with offset amounts?

My client is self-employed. His main income comes from work done for the state.  He bills the state and the state does a direct deposit into his business account.  But the last several months, the state has been taking the money for back taxes and his net deposit 0.  The garnished money is still income but it was used to pay back taxes.  How do I record this income and assign the deductions appropriately? Thanks!