cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

How do I record income tax owing?

 
3 Comments
Highlighted
Level 3

How do I record income tax owing?

Hello, Larry.davey!

You can set up a liability account to keep track of income tax you owe to the government. For specifics on which accounts to use when recording the liability, I recommend consulting an accountant.

You may also find this answer by one of our AllStars insightful. It's in response to a question about recording income tax paid for a sole proprietorship.

https://community.intuit.com/replies/2928338

I hope you have a great day!

Sharon

Highlighted
Level 1

How do I record income tax owing?

I have paid my personal income tax but I'm unsure of what account it should be entered in.  This is in my personal quickbooks account not a business
Highlighted
Level 3

How do I record income tax owing?

Hi Dale!

If you have a liability account where you track the amount of income tax you owe, you can use the same account to record payments. This way, the account will balance out as you pay off the "debt" you owe in taxes.

If you don't use a liability account, an expense account may be a better choice for you, as long as your personal and business funds don't mix.

In either scenario, I recommend speaking with an accounting professional to make sure everything gets entered properly.

Sharon