In 2019, I was overcharged $800 for a service; the refund finally arrived months later in 2020. In 2019 I entered the full amount I was charged as an expense, and in 2020 I entered the refund as a negative amount against that expense.
In 2020, my business expenses were less than the $800 refund so I have a negative amount for line 19, "other deductions". Is it correct to enter a negative number here?
(I am an s-corp with one employee -- me; I took another job so did very little work for this s-corp so thus the lack of normal expenses.)
Thanks!
