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One of my clients has me setup with a w9, and is withholding taxes. I would like to track this within QuickBooks. How would I do that?
Is the approach something like:
Is that the best approach?
What would I need to do to ensure this isn’t calculated in estimated taxes?
Someone suggested the following, but since I'm no expert in QBO, I don't really follow:
You should record the total invoice value as income, then create a line item on the invoice that will offset the cash received by hitting "Owner Withdrawals for Taxes" or another equity account you could set up "Tax Withheld by Client" (or something similar). The amount withheld only offsets the amount of tax you are required to pay in as estimated tax payments and would be credited to you on your return.
Any
Thanks all.
Solved! Go to Solution.
Good day, @TCConway,
I appreciate your time getting in touch with us and providing us with in-depth details about your issue. Let's get this squared away.
If you'd like to track this in QuickBooks using an invoice, you can follow the suggestion to create an invoice by adding a line item to record the check you receive and the tax paid by the client. Here's how:
That should give you the total amount less taxes, @TCConway. Once you receive the check payment, you can then use the Receive Payment option to record it in QuickBooks.
Additionally, since all businesses are unique, I suggest reaching out to your accountant for additional guidance. They can ensure the correct account is used for the items on the invoice transaction.
Please let me know if there's anything you need help with. I'm always around to help you get back on track. Have a good day!
Good day, @TCConway,
I appreciate your time getting in touch with us and providing us with in-depth details about your issue. Let's get this squared away.
If you'd like to track this in QuickBooks using an invoice, you can follow the suggestion to create an invoice by adding a line item to record the check you receive and the tax paid by the client. Here's how:
That should give you the total amount less taxes, @TCConway. Once you receive the check payment, you can then use the Receive Payment option to record it in QuickBooks.
Additionally, since all businesses are unique, I suggest reaching out to your accountant for additional guidance. They can ensure the correct account is used for the items on the invoice transaction.
Please let me know if there's anything you need help with. I'm always around to help you get back on track. Have a good day!
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