Federal Tax Refunds

In Quicken, is the appropriate accounting treatment of a federal tax refund received as cash Tax: Fed (Prior Year) expressed currently as a negative number?

Answers

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    I suggest using a split deposit transaction and assigning one entry for the refund with the same category you use for your federal tax payments (for example, Tax:Fed:1040) and another to Interest Inc for any interest you may have received with the refund.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @REOlsen

    Yes, the entry should be posted to Tax:Fed (Prior Year).

    Frankx

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