How do you record tax refund in journal entry?

To record a tax refund in a journal entry, you would typically debit the Cash account to reflect the increase in cash received. At the same time, you would credit the Income Tax Receivable account (if previously recorded) or the Income Tax Expense account to reduce the tax expense. The entry would look like this:

1. Debit Cash
2. Credit Income Tax Receivable (or Income Tax Expense).

This reflects the receipt of the refund and adjusts the related accounts accordingly.