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kempton.david
Level 1

How do I classify income that has already been taxed?

A portion of my income has already had tax removed by the employer, how do I classify this income to avoid being taxed twice?

1 Comment 1
IntuitAika
Intuit

How do I classify income that has already been taxed?

Hi kempton.david,

 

Thanks for posting in the Community!

 

You can allocate your income to an income account and select out of scope tax code on if it should not be reported on your BAS. Let me show you how to set up an income account in QuickBooks Online. 

 

  1. On Accounting tab select Chart of Accounts.
  2. Click New.
  3. On Account Type drop-down menu, select Income.
  4. Select a relevant Detail Type.
  5. Enter Name of the income account.
  6. Select Save and close

 

As always, you can consult an accounting professional regarding the tax codes that needs to be applied on your transaction for accuracy on your tax reporting. 

 

Feel free to message us back if you have any other questions. Have a great day!