Income tax - personal accounts

[Jim]

On Saturday 26 July 2003 10:09 am, Aldous Everard wrote:
> I have a very basic question which I can't find the answer to in the
> Gnucash Guide How do I enter income tax for my personal accounts?  Does
> this go into the equity section, and if so when I enter it there, which
> account does it balance with?
>
> tia
> Aldous
>
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The way I do it, I include the amount I pay in tax as income and transfer it 
from income to an expense account.

As an example, if my gross is $1000, and my check is for 800
1000 comes out of income, 800 goes into checking, and 200 goes into 
expense:taxes.

If I get a refund, I just make it income.  I suppose I could be more correct 
than this (If I got really big refunds, it would artificially inflate the 
amount of tax I pay, since I don't account for the refund as lowering my 
tax), but my goal is just to keep track of taxes I paid, and income, so it 
suffices.
--
Jim