Hi All,

Random question of the day, but I can't find answers anywhere, and I want to reconcile. I've recently setup a bank account that gets interest, is all setup in quickbooks fine. On the bank statement, there is the interest, but straight after there is a "Misc. Withholding Tax" which appears to be directly proportionate to the bank interest gained. Looked through google but can't for the life of find out where this should go into Quickbooks. A few things online say to just put interest in other income through receive payments, but then I can't include the withholding tax, and I don't really want to get taxed again. Essentially:

01/01/99 - Bank interest XXX$
01/01/99 - Misc. Withholding Tax XXX$

- Where would these go in quickbooks?

Any help greatly appreciated.

Firstly give the bank your TFN then they won't withhold tax.

So, wouldn't the tax component just go to tax expense?

Interest income would be 'Interest Income' or 'Misc Income' - whatever you have set-up for that type of non-trading income.

You shouldn't get taxed again as your bank statement at the end of the year will state 'Interest Paid' and 'Tax Withheld'. You'll enter these figures in your tax return, therefore stating you have already paid some tax on the interest income.

Alternative just add up interest + withholding and add that in if you plan to apply tax to it at a later date.