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Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

 
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Best answer May 17, 2020

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QuickBooks Team

Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

Hi there, @FixThis.

 

Yes. Withdrawal transactions are categorized as Transfer in QuickBooks Self-Employed. Thus, both personal and transfer transactions will not affect your self-employment taxes. It'll automatically be excluded from our calculations for estimated taxes or business expenses.

 

You can read this article to know more about the owner's withdrawal: Transfers: Owner's Withdrawal.

 

Also, feel free to check out this article to learn more about categorizing transactions: Categorize and edit transactions in QuickBooks Self-Employed.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day and be safe.

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QuickBooks Team

Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

Hi there, @FixThis.

 

Yes. Withdrawal transactions are categorized as Transfer in QuickBooks Self-Employed. Thus, both personal and transfer transactions will not affect your self-employment taxes. It'll automatically be excluded from our calculations for estimated taxes or business expenses.

 

You can read this article to know more about the owner's withdrawal: Transfers: Owner's Withdrawal.

 

Also, feel free to check out this article to learn more about categorizing transactions: Categorize and edit transactions in QuickBooks Self-Employed.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day and be safe.

View solution in original post

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Level 1

Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

Great thanks. So logging using either option means the same thing? 

Highlighted
Level 1

Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

Thanks. So for clarification whether I log using “transfer” or “personal withdrawal” (as there are two separate options) it means the same thing?

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Moderator

Difference between logging a transfer as “transfer” and “personal withdrawal” from a PayPal linked account to personal bank account, are both categories automatically excluded?

Hello there, @FixThis!

 

Both transfer and personal withdrawal are the same thing and are excluded in tax calculations as mentioned by my colleague above. In addition, here's an article you can read to learn more about these categories: QuickBooks Self-Employed Schedule C Categories breakdown.

 

Lastly, I've got you this helpful article for ideas about your self-employed account: QuickBooks Self-Employed Overview.

 

If you have any other questions, you can always leave them in the comments. I'll be here to lend a hand.

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