Tax Refund

[Bill Wisse]

On Wednesday 25 August 2004 15:39, Aaron Gaudio wrote:
> 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.).

Ok. I have done it like that, but for some reason it doesn't seem right.
The refund , of course , is from a different financial year and I have already 
paid taxes ( it is withholding tax) for this current financial year.
The main Tax header shows now a negative amount ( I got more back than what I 
had already paid in this financial year).
Maybe I look at it in the wrong way. :-)


>
> 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).

-- 
Greetings from
/bill at 169 west , 19 south.  
Disclaimer: Any errors in spelling, tact, or fact are
transmission errors."