How do I account for a credit given by the state when paying taxes? The amount showing in my bank recon is not the same in QB

We can enter a deposit in QuickBooks Online to record the refund tax credits given by the state when paying your taxes, Jacques. Let me help track these entries so you can match them in your bank reconciliation.

If these credits are for sales tax refunds, you can create a bank deposit and enter the expense account used when paying your taxes. To do this:

1. Go to the +New icon and select Bank Deposit.
2. In the Account dropdown, choose the account you want to deposit the money into.
3. Select the checkbox for each transaction you want to combine.
4. In the Add funds to this deposit section, enter the name of the state agency the item was Received From.
5. Then, enter that expense account in the Account column.
6. Review all details and click Save and Close.

I'm also including this reference for more detailed inputs: Record and make bank deposits in QuickBooks Online.

Additionally, if these refund credits are from your payroll taxes, we can resolve tax overpayment issues in your account. If the quarter hasn't ended yet, you can leave the overpayment as it is. It'll cover any additional payroll tax liabilities you have for the rest of the quarter until it's all used up.

However, if you want to apply the overpayment to the next quarter or request a refund instead, you can visit this guide for additional information: Resolve a payroll tax overpayment.

Moreover, here's an article you can utilize when reviewing accounts in your file to ensure they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

You're always welcome to reply to this post if there's anything else you need further assistance with when managing refund tax credits in your account. Stay safe, and have a good one!