Does the money I subtract still count as income?

No. Those transactions are deleted, so only the lower expense remains.

What happens when I get all the money back?

The expense and the money you got back are both deleted.

Paid for the whole dinner and your friends sent you their part, or got a refund? Subtract it, so the expense shows what you really spent.

Open the expense in Transactions and choose Subtract a transaction.
On the web: It's under the three dots at the top, beside Edit. On a phone, you can also hold the transaction in the list.
On iPhone: It's under the three dots at the top right. You can also hold the transaction in the list.
Under Money you received, pick the money you got back. The amount drops as you pick.
Check the new amount, then confirm. What you picked is deleted, and the expense's notes record it.
On the web: Choose Delete 2 and update. The number follows what you picked.
On iPhone: Tap Delete 2 and update. The number follows what you picked.

Does the money I subtract still count as income?: No. Those transactions are deleted, so only the lower expense remains.
What happens when I get all the money back?: The expense and the money you got back are both deleted.

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