Business Income Tax Refund Check - What GL Account to Post to?

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Natalie S

New member
I'm new to this company and haven't quite figured out how everything has been posted. I have three income tax refund checks in front of me and I'm not sure what GL account to post these to. There isn't one for an income tax payment to offset, and I'm confused how to account for these so I can get them deposited.
What type of account would this be? Income, expense...(taxes are not my specialty and no one that was here last year knows what these are for except the "941" referenced on the check)
 
Setup an account called Tax Refunds:Federal; Tax Refunds:State

Federal and state being the subaccounts.

You'd have to do break this out anyway when the tax return is being completed, especially for federal tax refunds, as it would not included as taxable income; similar in nature federal tax payments cannot be deducted.

You should still see, however, if someone can find the corresponding tax payments in relations to these refunds.
 
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