QB Issue Resolution:

Thank for posting in the QuickBooks Community. I’d be happy to help share on how you enter the deposit in QuickBooks Online for the sales tax refund.


You can use bank deposit and use the expense account used when you pay your taxes.


Here’s how:

  1. At the top right, click the Plus icon.
  2. Select Bank Deposit.
  3. In the ACCOUNT field, select the bank account to which to deposit funds.
  4. Select the checkboxes of the transactions to deposit in the Select the payments included in this deposit.
  5. In the Add funds to this deposit table, enter the name of the state agency the item was Received From.
  6.  Enter that expense account in the ACCOUNT column.
  7. Select Save and close.

For more information about this process, I recommend checking this article: How to record bank deposits.


I’ve added some screenshots for your reference. However, if you need additional help in recording the deposit, feel free to call our phone support. They have the tools that can help you get to the resolution quickly.

Resolution for Issue 'The state refunded me a sales tax overpayment. How do I enter the deposit?' available: Yes (Solved).
Source: Intuit Community forum.

The state refunded me a sales tax overpayment. How do I enter the deposit?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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