C corp tax refund

[tle0880]

I paid federal taxes for my C corp in 2021 when it turned out I didn't need to.  Newbie mistake.  I received that amount back as a refund in 2022.  Let's say it's $5000.  How does the refund affect my 2022 taxes?  Does it reduce my deductions in 2022?  For example, if my incurred expenses in 2022 were $50,000, would I only have $45,000 in expenses because of the $5000 refund from 2021?  Where would I account for the $5000 refund in TurboTax business software? 

Thank you in advance for your assistance.

[Anonymous_ · Accepted solution]

Federal income tax refunds are not reportable on a federal income tax return.