Why does my estimated tax payment show up as a deduction?

Hello @phillyc101,

Let me share some information about how the posting account of your estimated taxes is affected by the method of payment for your estimated tax.

First off, if you paying your estimated taxes with your bank account connected to the QuickBooks, you only need to categorize the payment. Make sure to select your Estimated Tax account as the category so it won't show up as a deduction.

But if you make the payment directly from the website of your agency, you'll have to select Estimated Tax as the posting account when manually recording the tax payment. Here's how:

1. Go to Transactions.
2. Select Add transaction.
3. Enter "(Date and fiscal year) quarterly federal tax payment" in the description field.
4. Enter the amount and the date you made the payment.
5. Under Select a category, select Taxes.
6. Select Estimated Taxes.
7. Click Save.

In addition, here's an article you can read to learn more about paying your estimated taxes: Pay federal estimated quarterly taxes in QuickBooks Self-Employed.

Lastly, I've got you this helpful article for ideas about how your estimated taxes are calculated and when will you need to create a tax payment: How QuickBooks Self-Employed tracks self-employment taxes?

Stay safe and comment below or post again if you have any other questions. I'll be here to lend a hand.