[GNC] Help With Configuring US Tax Report Options For Income Returns & Allowances

[Alex Aycinena]

>
>
> ---------- Forwarded message ----------
> From: Adrien Monteleone <adrien.monteleone at lusfiber.net>
> To: gnucash-user at lists.gnucash.org
> Cc:
> Bcc:
> Date: Thu, 23 Oct 2025 16:57:32 -0500
> Subject: Re: [GNC] Help With Configuring US Tax Report Options For Income
> Returns & Allowances
> Seems like a bug at first glance. I've always seen R&A as a
> contra-income account as you have it setup. I've never seen it as an
> expense account.
>
>
It is not a bug and can't easily be changed due the way the TXF output
expects things.

You could 'trick' the system by setting up two 'dummy' off-setting expense
accounts in addition to the contra-income account. The contra-income
account shows up in your income statement the way you want and the two
off-setting expense accounts have the same value as the contra-income
account but with different signs and therefore cancel each other out in the
income statement. For the Tax Report, you don't assign a tax code to either
the contra-income account or the 'dummy' expense account with the credit
balance, so they don't show up on the tax report. You assign the tax code
to the 'dummy' expense account with the debit balance so that only it shows
up on the Tax Report.

If you don't need transaction details in the Tax Report, you can put the
amounts in the two 'dummy' off-setting expense accounts just before running
the report with one journal entry. If you do want the transaction details
on the Tax Report you would enter every transaction that goes into your
contra-income account with two additional splits to the two 'dummy'
off-setting expense accounts (debit contra-income account, credit one dummy
account and debit the other dummy account).





> If possible, it should at least not be restricted.
>
> Regards,
> Adrien
>
> On 10/23/25 12:59 PM, Keith Fetterman wrote:
> > Hi,
> >
> > I am attempting to configure the tax report options for an "Income >
> Returns & Allowances" account, which is a sub account of the “Income"
> account. I have the "Returns & Allowances” account configured as an Income
> type account so the account appears in the income section of an income
> statement.
> >
> > I am unable to select the "Schedule C - Returns and Allowances” TXF
> category in the Tax Reporting Options for the "Returns & Allowances"
> account because the "Schedule C - Returns and Allowances” TXF category is
> only available for Expense type accounts and not Income type accounts.
> >
> > If I change the "Returns & Allowances” account to an Expense type
> account, the account disappears from the income statement.
> >
> > I appreciate any feedback or ideas on how to configure the "Returns &
> Allowances” account is a contra-income account, so it appears in the income
> section of the income statement, and I can configure the "Schedule C -
> Returns and Allowances” TXF category for income tax reporting purposes.
>
>
Alex