# Utilities refund or pass-through income? **URL:** \ **Category:** Uncategorized\ **Created:** [June 24, 2025, 1:54pm UTC](https://community.stessa.com/t/utilities-refund-or-pass-through-income/17363 "2025-06-24T13:54:53Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![jaiminswita](https://avatars.discourse-cdn.com/v4/letter/j/dec6dc/32.png) [@jaiminswita](https://community.stessa.com/u/jaiminswita)\ **Post date:** [June 24, 2025, 1:54pm UTC](https://community.stessa.com/t/utilities-refund-or-pass-through-income/17363/1 "2025-06-24T13:54:53Z")
Hello, We offer allowance of $50 to our tenants for Electricity and Water, and they pay the remaining balance for Electricity and Water to us. How do people handle this? As Income under Tenants Pass-through or Utilities-refund? Wondering if there are pros and cons for either. Thanks ---
**Author:** ![tlatuga](https://avatars.discourse-cdn.com/v4/letter/t/65b543/32.png) [@tlatuga](https://community.stessa.com/u/tlatuga)\ **Post date:** [June 24, 2025, 5:48pm UTC](https://community.stessa.com/t/utilities-refund-or-pass-through-income/17363/2 "2025-06-24T17:48:41Z")
For best documentation, you’ll want to record the extra payment from tenants as “income \> pass-through”. You’re receiving extra funds from them for non-rent purposes. This will be recorded in the top section of your profit & loss which represents revenue. The “utilities \> refund” will record in the bottom section of P&L, which represents expenses. This is best used when the utility company is issuing a refund or return of payment. If memory serves me correct, Stessa does not issue 1099’s (I may be wrong as I collect rent through other avenues). If they were to do so, and you used the “income \> pass-through”, your bookkeeping would appropriately match the 1099 issued because it would reflect total dollars collected. -Tom www.realcentsorganized .com