QuickBooks enables you to register the tax refunds and then register tax transactions. You must always sustain tax transactions in the particular Tax Payable Account to enable them to be picked up by reports and ensure are to be done via the official entry forms.
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Read on to learn how to record a tax refund in QuickBooks successfully.
Tax refunds can be included in the QuickBooks accounting software by making a deposit. The option for Make Deposit enables you to finish the purpose. While accessing QuickBooks Online, you must access the bank Deposit feature to handle refunds acquired from tax submission. In both software, the details must be saved to register your tax refund properly.
Below we have discussed the comprehensive methods to display how to register your tax refund in your QuickBooks Online:
Method 1: Registering a Tax Refund in QuickBooks
Your particular tax refund can be added or registered in QuickBooks with the help of suppliers. It is a menu that can be located in the particular main menu of the particular accounting software.
Here are the steps to record a tax refund in QuickBooks:
- Access the menu of QuickBooks to go to the Suppliers.
- Press on the option, Tax Activities Group.
- Select Manage Tax.
- Press on the option Receive Tax Refund.
- In the option for Make Deposit, you will witness a few fields. Add the needed information to them.
- State the amount refunded.
- Confirm the details to make sure they are precise.
- Lastly, Press Save and Close.
Method 2: Adding Tax Refunds in Your QuickBooks Online
Here are the steps to record tax refunds by adding them to your QuickBooks Online:
- Run QuickBooks Online.
- Now search for the +New option and then use it.
- Now navigate to the Other option.
- Press on Bank Deposit.
- Give the information concerning your account.
- Add the details connected with the deposit.
- When the button for Save and Close is visible, click it.
How to Record a Sales Tax Refund in Your QuickBooks Account?
You can opt to create a credit memo in QuickBooks for sustaining a sales tax refund record. But, if you receive a refund from any particular tax agency, then you must form a sales receipt for the purpose of recording it, and if you are accessing QuickBooks Online then the particular sales receipt will need to be prepared for the purpose of tax refund saving.
Let us now understand the methods to record a sales tax refund in QuickBooks Online in a detailed manner:
Method 1: Include Your Sales Tax Refund in Your QuickBooks Account
Once you receive the refund for the submitted sales tax, you can include it in QuickBooks with the help of the Customers menu. Here is a run-down of the detailed steps on how to record sales tax refund in QuickBooks:
- Launch the Customers menu in QuickBooks.
- Choose the option, Create Refunds/Credit Memos.
- Enter the details of the particular sales tax refund. It is important to note that in the credit memo, the items of the invoice should match the amount and quantity of the sales tax.
- Enter the Existing date.
- Now you need to click the option, Save and Close.
Method 2: Recording Sales Tax Refund in QuickBooks Online through a Tax Agency
You may fail to record a sales tax refund in your particular QuickBooks Online with the help of any direct option or direct approach. But it is possible to create a sales receipt in this latest software version. In this particular sales receipt, It is possible to enter the information about the refund acquired from the sales tax.
- To Create a Sales Receipt in QuickBooks Online, Press Customer option.
- Select Deposit to Bank Account.
- Now pick the items or services concerning sales.
- Include the Refund Amount for the Particular Taxable items.
- Check if the Refund Amount has been Written in the right manner.
- Once the refund amount is added to the taxable amounts, you need to make sure the information is saved.
In this manner, It is possible to record sales tax refunds in QuickBooks Online. You must remember, the best option to register such funds is by recording such funds by creating a sales receipt.
How to Record Payroll Tax Refunds in QuickBooks as Checks?
Here are the steps to record payroll tax refunds in QuickBooks Online in the form of checks:
Step 1: Open the particular Employee menu in your QuickBooks account.
Step 2: Choose Liabilities and Payroll taxes.
Step 3: Add the name of your vendor.
Step 4: Choose the Liabilities and Payroll Taxes group.
Step 5: Select Deposit Refund Liabilities.
Step 6: Select the vendor name.
Step 7: Enter the deposit date in the given Refund Date column.
Step 8: Check For the Period Beginning option.
Step 9: Add the payment period day.
Step 10: Determine how the deposit needs to be managed by QuickBooks. Choose any one of the options:
- Classify it under the option, Under the Funds which are deposited
- Deposit to
Step 11: Now go to Taxes and Liabilities.
Step 12: The particular payroll items is required to be chosen.
Step 13: In the Amount option, see the positive amount that is included by you.
Step 14: Click Ok.
Step 15: If you are accessing the Assisted Payroll version, Choose Employees.
Step 16: Select the Send Payroll Data.
Step 17: Wait till you witness Send or Receive Data.
Step 18: Review Your Tax Reconciliations along with your Funds.
Your refund for payroll tax will be saved in QuickBooks once the steps mentioned in the sequence are completed.
How to Record a Corporate Tax Refund in QuickBooks Online?
In QuickBooks Online, It is possible to record the refund of your Corporate Tax when you acquire it. Here are the steps to record a corporate tax refund in QuickBooks Online:
- Press on +New
- Find the option, Other and choose it
- Press on Bank Deposit
- Enter the detail concerning your account.
- Now enter the details concerned with the corporate tax refund
- To save the details, Press Save and Close.
In QuickBooks, It is possible to record a tax refund with the several options available via the software. As stated before, It is possible to record several kinds of tax refunds. Corporate tax refunds, sales tax refunds, etc., are a few of such types.
We hope that you have now learned all about the steps to record or enter such refunds in QuickBooks and QuickBooks Online. Just make sure that each and every step mentioned above is understood and followed diligently.
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Frequently Asked Questions
How to Record Tax Payments in QuickBooks Online?
Here are the steps to record your tax payment in QuickBooks Online:
Step 1: First, Navigate to the option, Taxes, and then choose the Payroll Tax.
Step 2: Now choose and press Pay taxes.
Step 3: Now press on the Record Payment on the particular page of Pay Taxes that you wish to pay.
Step 4: Choose Other and add the right date for the particular payment that was done.
Step 5: Also, Add the right check number.
Step 6: Lastly, Press on the Record option.
What is the Process of Recording State Tax Refunds in QuickBooks?
Tax payments (State and federal) are generally considered as business since they are company expenditures. But, when refunds are recorded, you can mention them as Personal and after that omit the refunded payment in your particular QuickBooks Self-Employed account.