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Level 2
posted Feb 7, 2021 10:39:22 AM

Income from 2019 returned in 2020

I received income (that I paid taxes on) in 2019 that I had to pay back in 2020 - when the events were canceled.  How do I handle this on 2020 return?

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1 Replies
Level 2
Feb 11, 2021 3:43:47 PM

What Account did you debit when you wrote the check (cash credit)? 

If you have a Sales (Services) Returns and Allowances account, that should have taken the Debit.  Your current year's Sales/Services will be reduced by those amounts and taxable sales for this year will be lower. Should equal out.