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bkramer1
Level 1

Does anyone know how to enter a credit amount for withholding tax to decrease the balance due in the Payroll Tax Center?

I entered a negative amount through "Record Tax payments" but instead of decreasing the current amount due, QBO increased it.
1 Comment 1
GebelAlainaM
QuickBooks Team

Does anyone know how to enter a credit amount for withholding tax to decrease the balance due in the Payroll Tax Center?

Hello there, @bkramer1.

 

I'll ensure you can enter a credit amount for withholding tax to decrease the balance due.

 

If you want to decrease the credit amount due, you may need to enter a positive amount instead of a negative one. 

 

You can refer to the following steps and the sample screenshots below for visual reference:

 

  1. Go to the Taxes menu, then select Payroll Tax.
  2. Locate the withholding tax you want to enter a credit amount and click Pay.
  3. Fill out all the needed information in the Add Tax payment section.
  4. In the Payment amount area, enter a positive amount.
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  5. Then, click Submit payment to save changes.

 

Now, the amount due is reduced by $10 after we apply the positive amount.

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Please check out these articles for future reference in managing payroll taxes, forms, and reports in QuickBooks:

 

 

Reach back out if you have more tax-related questions or concerns. I’ll be here anytime to help. 

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