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hello68
Level 1

How do I mark income that already had taxes withheld?

 
5 Comments 5
Kristine Mae
Moderator

How do I mark income that already had taxes withheld?

You can record two separate transactions for the income and tax, Hello68. I'll help you with the steps.

 

First, here's how to record the sales transaction:

  1. Go to Transactions, then click Add transaction.
  2. Add a description, then add the amount.
  3. Select Business.
  4. Click Select a category, then select an income account.
  5. Click Save.

Here's how it'll look like:

 

 

Then, here's how to record the taxes withheld:

  1. On the Transactions page, then click Add transaction.
  2. Add a description, then add the amount as negative.
  3. Select Business.
  4. Click Select a category, then select Sales tax.
  5. Click Save

I'll include the screenshot for better guidance.

 

 

When you pull up the Profit and Loss report, it'll show you both sales (income) and taxes (expense). 

 

If you need our help, drop a comment below. We'll get back to you as soon as we can. 

hello68
Level 1

How do I mark income that already had taxes withheld?

This is helpful for sales tax, but not for income taxes withheld. Most of my freelance income last year was W2 income. The transaction comes in as post-tax income, but assumes I still need to pay taxes on it, so it's not calculating my estimated taxes accurately.

Joshua R
QuickBooks Team

How do I mark income that already had taxes withheld?

Good afternoon, @hello68.

 

Welcome back to the Community, I'm here to help you get on the right track.

 

I suggest that you speak with your accountant as they will have the information on how they'd like the income to be categorized. 

 

If you do not have an accountant, we do offer QuickBooks Live, which is a team of QuickBooks Certified Bookkeepers.

 

If you have any other QuickBooks related questions, just reach out. We're always here to help.

 

 

 

hello68
Level 1

How do I mark income that already had taxes withheld?

I do have an accountant already, but I rely on QuickBooks to estimate my quarterly taxes based on what is marked as income. Some of that is W2 income and some is 1099 income. I can't figure out my tax bracket if I exclude the already-taxed income. 

Basically, I want to be able to record in QuickBooks what I have *already* paid in income taxes, based on what was withheld from my paychecks. Is there a place where I can do that? Under "taxes", it only wants to look at a transaction that was specifically paid.

Jen_D
Moderator

How do I mark income that already had taxes withheld?

Greetings, @hello68,

 

QuickBooks Self-Employed estimates the Quarterly Estimated Taxes from your Tax Profile, income, expenses, deductions, and the projections for the remainder of the year.

 

You must record the taxes manually into the system so you can record its payment in the Taxes page. Here's how:

 

  1. Go to the Transactions page and select Taxes for the Category.
  2. Pick the tax type you want to record.
  3. Complete all the tax details then select Save.

Once you're ready to record the payment, simply go to the Taxes menu and click the Pay Now button. See this:

 

Refer to these resources to learn more about recording taxes in QBSE:

 

Self-Employment Taxes.

How can QuickBooks Self-Employed help me manage my taxes and forms?

 

If you need further assistance with handling your self-employed taxes, you may reach out to our representatives. Here's how to contact QuickBooks Self-Employed Support.

 

Let me know how if you have other questions by leaving a comment below. I want to make sure you can account the taxes properly, and I'm here to provide further assistance whenever you need it. Cheering you a productive week!

 

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