Tax Refund

[Aaron Gaudio]

On Wed, 2004-08-25 at 14:54 -1100, Bill Wisse wrote:
> How do I handle a Tax Refund in GC?
> I got a cheque which will be banked in my cheque account.
> I could create an account called Tax Refund, but under what header would I put 
> that?
> I can't put it under Income and I don't think I can put it under Tax, because 
> this would give me a wrong account of the taxes I have paid ( or owe) for 
> this current year.
> 
> Any suggestions?

A tax refund is a refund of taxes you overpaid; so I would take it right
out the appropriate existing tax expense account (federal, state,
etc.). 

Another possibility, if you wanted (or had to) using an accrual method,
would be to redirect a portion of each tax payment to an Accounts
Receivable account instead of to your Taxes expense account. Your refund
should be equal to the value of the Accounts Receivable, and you would
then transfer it all to your bank account (or wherever the refund check
went). This is pretty complex and probably only useful for a business
(if even then).

-- 
Aaron Gaudio <prothonotar at tarnation.dyndns.org>