Tax Refund Categorization

Paddy

I didn't notice but our tax refund is under category Tax Refund and is listed as income. How can I change the category to not show up as income?

volvogirl

To check the tax line assignment open the Category list by either clicking on the Category Icon or go to Tools-Category List or Ctrl+Shift+C.  Then select the category and right click on it to Edit it.  Click on the Tax Reporting Tab and uncheck the 1040 tax line. That would be for federal. A state refund can be taxable income.

Paddy

@volvogirl Mine only has this:

volvogirl

Hmmm, then I guess because it is listed as an Income category. You would either have to customize the report to exclude that category or your tax refund should go back into the tax expense category you use for taxes paid since it is a refund of taxes paid and withheld.

Rocket J Squirrel

I think it's correct as is. Mine is the same: "tax-related income" but no Tax Line Item.

State tax refunds do have a TLI, "1099-G:State and local tax refunds". (Yours seems to be missing, @volvogirl )

volvogirl

I don't understand. What is missing on mine? I just checked and all my Tax categories are set as Expense. So I put my federal refund under Tax:IRS. Even my state refund is setup as Expense Tax:FTB Refund and assigned to 1099G state and local tax refunds

Rocket J Squirrel

@volvogirl It looked from your screen shot that TaxRefund:State didn't have a TLI assigned. I guess I looked at it wrong.

volvogirl

I didn't post a screen shot. That was the op.

Rocket J Squirrel

D'oh. I'm having a bad vision day. Cataract surgery next month can't come soon enough.

volvogirl

I had my cataract surgery a year ago August. It went great. Did both eyes at same time. I could see better right away. Can drive at night now.