Skip to main content
F
Freddie44
April 15, 2022
Question

How to clean-up the mix-up at CRA in QB.

  • April 15, 2022
  • 1 reply
  • 0 views

Hi, Had some confusion at CRA and not sure how to clean this up in QB.  After my corporate taxes were filled I was issued a refund that just stayed in my account as a credit.  At the same time, I paid my GST owing.  For some reason they got it into the wrong account (that has been fixed now) but in the meantime I was owing GST funds.  In their wisdom they took the $38 credit from my corporate tax account and applied it to my GST owing account.  Now that all of this has been cleared up, I have a $38 credit in my GST Account now.   This is fine but not sure now to deal with this in QB to make sure that I reduce the GST owing this year by the $38 credit?

 

My first thought was to debit "Business Taxes Paid to CRA" expense account for $38 first to get the taxes paid total correct.  Now what account / type of account do I credit to make this balance and to keep track of the $38 installment?

 

thanks,  

1 reply

Jen_D
Jen_D
April 16, 2022

It's good to have you here, Freddie.

 

I appreciate the in-depth details you've shared with us. Let's make sure you're able to apply the tax refund towards your current sales tax liability.

 

For this, you can create a sales tax adjustment to reduce your liabilities. To adjust your sales tax due:

 

  1. Go to Taxes, select Sales tax, and select Prepare return under the Filings section.
  2. On the Prepare return page, select the Adjust link on the far right of the line you wish to adjust.
  3. Add the amount of tax you would like to add to the line. To reduce the amount, enter a negative number.
  4. Select your adjustment account. This may be an income account for tax credits, or if your Tax Payable account is correct, you can select the Payable account to adjust the return without affecting your Chart of Accounts. We always recommend consulting an accounting professional to ensure correctness on this step.
  5. Select Save to save the adjustment.

 

I've added a few links to help you with processing tax payments and adjustments:

 

 

Visit us again if there's anything else you need help with. I'll be right here to help you around QuickBooks and your sales tax processing.

Terms & ConditionsAccessibility statement