Categorization question.

Are those taxes now payable by you? If they are, you should put the credit in the category you'll be paying them out from. It's just a credit rather than a debit. Later when you pay the taxes, it'll all work out.

If you're not liable for those taxes, the seller sold you the house for less, no matter what he calls the credit. Adjust your liability accounts accordingly.

Agree, the crdit should be categorized to your real estate taxes category. This credit is likely a pro-rata share of the total annual tax. When taxes come due, you will probably be liable for the full year of taxes. The net cost to you will be the full amount less the credit. The net will probably be tax deductible.

You really need to examine your escrow statement to determine how to deal with it. The seller probably accrued taxes on the property from the lien date and the sale is probably before the payment due date. When you pay the taxes you will have to pay the amount both the former owner and you owe. The credit is to reimburse you for paying the former owners share. You will be able to deduct for taxes the difference between the total and what you were credited. So credit the taxes in Quicken now, when you pay them all will be well.