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January 27, 2024
Question

I received a check from The State of CA EDD for overpayment of my tax payment how do i record this in QBO

  • January 27, 2024
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1 reply

January 27, 2024

Let me guide you in recording the refund check, ppierce277.

 

I can present two scenarios based on the details you've provided, such as sales or payroll tax, and the steps will differ for each.

 

Let's start with the sales tax. You can create a bank deposit and select the expense or liability account you've used when paying your taxes.

 

Here's how:

 

  1. Go to the +New button.
  2. Under Other, select Bank Deposit.
  3. Select the Add funds to this deposit section.
  4. Choose the bank account from the Account drop-down arrow to deposit funds.
  5. Enter the name of the state agency the item from the Received From the drop-down list.
  6. Pick the correct expense or liability account in the Account column, then type the refund check amount.
  7. Hit Save and close.

 

To review this transaction, you can pull up the Deposit Detail report. Go to the Reports menu, then select it from the Sales and Customers section.

 

To resolve payroll tax overpayments:

 

  1. Go to the Taxes menu, then Payroll Tax.
  2. Select Pay Taxes to check the overpayments.
  3. Choose Resolve overpayment next to the negative amount. It will show you the breakdown of the taxes.
  4. Pick the option applicable to you.
  5. Click Mark as Resolved.

 

For more details, please refer to this article: Resolving a tax overpayment.

 

Another option is to enter a prior tax payment and post the overpayments for the future.

 

Additionally, run payroll reports in QuickBooks to ensure tax information is correct.

 

Let me know if you have more questions about handling your taxes or any QuickBooks-related. I'd be glad to help you some more. Take care.