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how to enter a tax refund?

I have been reading a while, time to try a question:

I have a check from the US Treasury here that I don't know what to do with. I assume it is a refund from an overpayment (I was expecting one), but it has a memo of: "1.41 INTEREST 54 DAYS"

My (new) accountant was on the phone when I showed it to him, when I told him it had been sitting around for a while because I didn't know what to do with it, he said "deposit it". When I asked him what account it should go in, he glanced at the check and said "interest income".

I am skeptical. The entire amount of my refund is not interest income, is it? Should it go back to the same account the tax payments come out of? Evidently at least part ($1.41?) of the check is interest income, should it go in the interest income account while the rest goes some place else? Can that be done?

Actually, I can't even figure out how to enter it in the deposit, for sure.

I could use some helpful suggestions.

Thanks

Reply to
Phil Nelson
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Interest income $1.41 Balance of check reduce whatever tax you overpaid.

Make deposits. If you have other checks select them. Line after last check enter the interest income account, from US Treasury or IRS, check, check number amount $1.41. Next line, the tax account, same everything except the amount. Done.

If you print deposit slips before you do this make sure the preference item is on to combine same check numbers.

Reply to
Golden California Girls

OK, that last is what I needed, thanks! I was stuck at having two line items for one check on my deposit slip, afraid the bank wouldn't accept it. Now that I think about it, I don't know why I didn't just write the deposit slip with one line. Fear of auditors, I guess.

I guess it will seem more permissible if QuickBooks combines the lines for me. :)

Thanks!

Reply to
Philip Nelson

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