Some income payments I receive are paid through the CIS register. How do I reflect this in my quickbooks account so I'm not taxed twice on these payments?

gcjoinery145-gma · ‎May 05, 2022

JamaicaA · ‎May 06, 2022

I appreciate you taking your time in getting back to us, @gcjoinery145-gma. I'd like to furnish you with additional information about recording your income payments.

In normal circumstances, you can create a CIS transaction the same way as a normal transaction. With this, you can follow my colleague’s suggestion above to record the payments you received from the contractor. For more details about this, read through this article: How to create CIS transactions in QuickBooks Online.

To avoid duplication of taxes, I recommend consulting your accountant. They can scan through your statements and calculate the tax along with your income. Through this, we can ensure that the transactions are correct as well as your books.

I’ve included these resources to help you learn more about how the CIS feature works in the program:

Stay in touch with us here in the Community if you have other questions about managing CIS transactions in QuickBooks Online. I'm always here to help.

View solution in original post

CharleneMaeF · ‎May 05, 2022

Hi there, gcjoinery145-gma. I've got the steps to help to record your income payments in QuickBooks.

When receiving money from a contractor, we can add the transactions to QuickBooks by creating an invoice or sales receipt. Here

Go to the + New menu and then select Invoice or Sales Receipt.
Choose the contractor, then QuickBooks will use your CIS rate to calculate the CIS to deduct (CIS suffered). If you're charging for materials on this job, you can add these too.
Once done, click Save and close.

For more details, please see this article: How to create CIS Transactions in QuickBooks Online?.

Additionally, I'm adding these articles that'll help you learn more about how the CIS feature works in the program:

Please don't hesitate to visit us again if you need help in tracking and managing your transactions. I'm always here to help you out. Have a great day.

gcjoinery145-gma · ‎May 05, 2022

Thanks for responding.

The payments I'll receive will already have had the tax deducted by the contractor before I receive the payment. Surely by marking it in my account to remove tax at the CIS rate I've set will mean I'll pay tax twice on that payment?

JamaicaA · ‎May 06, 2022

I appreciate you taking your time in getting back to us, @gcjoinery145-gma. I'd like to furnish you with additional information about recording your income payments.

In normal circumstances, you can create a CIS transaction the same way as a normal transaction. With this, you can follow my colleague’s suggestion above to record the payments you received from the contractor. For more details about this, read through this article: How to create CIS transactions in QuickBooks Online.

To avoid duplication of taxes, I recommend consulting your accountant. They can scan through your statements and calculate the tax along with your income. Through this, we can ensure that the transactions are correct as well as your books.

I’ve included these resources to help you learn more about how the CIS feature works in the program:

Stay in touch with us here in the Community if you have other questions about managing CIS transactions in QuickBooks Online. I'm always here to help.

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Some income payments I receive are paid through the CIS register. How do I reflect this in my quickbooks account so I'm not taxed twice on these payments?