I dump my Federal refunds (when I have any) into my "X-Miscellaneous"
category (which is what I use for any transactions that don't have taxable
implications). State refunds do have such implications, so I enter them
(when I have any) as a "miscellaneous" income category tied to my 1040.
--
Michael Gordon


"Vital" <Vital[at]discussions.microsoft.com> wrote in message
news:911CD57E-65B7-4053-8181-E98C39FDCBB0[at]microsoft.com...
- quote -

I use Expense categories "Federal (State) Income Taxes - Previous Year",
regardless of due or refund. Chris' method has advantages over mine.

"Vital" <Vital[at]discussions.microsoft.com> wrote in message
news:911CD57E-65B7-4053-8181-E98C39FDCBB0[at]microsoft.com...
- quote -

"Vital" <Vital[at]discussions.microsoft.com> wrote in message
news:911CD57E-65B7-4053-8181-E98C39FDCBB0[at]microsoft.com...
- quote -


This is almost as good as a top-post/bottom-post argument among newsgroup
bigots.

To answer your question, I prefer neither. I record a net tax expense (or
expense reduction) transaction dated 12/31 in the affected tax year. I enter
in a dummy account I call Taxes Due/Refund, categorized as income tax
expense. When the actual cash transaction takes place, I record it as a
check or deposit in my primary checking account, transferred to/from the
Taxes Due/Refund account. That keeps the tax expense correct, and in the
proper year.

Others will reply with conflicting opinions.
--
Chris Cowles
Gainesville, FL

where should I categorize my State and Federal Tax refunds? Expense or
Income? which specific category? thanks