How to set up or activate the Income Tax in the main menu? At the moment, I can only see Sales Tax, Payroll Tax and 1099 filings under Taxes.

The Income Tax feature in QuickBooks Online (QBO) is only available if your tax form is set to Sole proprietor under the Company type settings in your account, Dixon FDS.

Here's how to verify your setup:

1. Go to the Gear icon at the top and choose Account and settings.
2. In the left menu, select Company and go to the Company type section.
3. Review the Tax form field and ensure this is Sole trader. 
4. Click Save, then Done. 

After that, return to the Taxes page. You'll now be able to see the Income Tax section. 

You might also want to look into QuickBooks Live Expert Assisted to get personalized support managing your accounting tasks. They can automate bookkeeping, simplifying invoicing, expense tracking, and sales tax management.

If you have other questions, you can reply to us in this thread.

Hi Mirriam,

Thank you for your reply.   We originally set up as Corporation reflecting our business type.  If we are going to amend our business type to Sole Proprietor, will it affect the tax calculation and filing? 

Hello Dixon FDS,

You are correct! Changing your business type from a Corporation to a Sole Proprietorship will significantly impact your tax calculation and filing. 

However, if you were trying to change your business type from LLC to Sole Proprietorship, you would have to obtain a new Employer Identification Number from the IRS. This is because the entity structure and tax classification of your business have changed, necessitating a new EIN for tax and identification purposes. 

Furthermore, you can read this article to have detailed information about your tax business information, along with the steps in QBO: Change your business name, contact info, or EIN in QuickBooks Online 
 

Apart from that, feel free to utilize this article to help you set up your QBO, along with the basic features that the software has to offer: Get started and adjust settings after you sign up for QuickBooks Online

Please know that you can always revisit this thread and click Reply if you need further assistance with regard to changing your business tax forms in QBO. We're always here to assist you along the way.

HI Sasha,

Does it mean that The Income Tax feature in QBO is not available for Business Type being set as "Corporation"?

How can we book the Corporation Income Tax Expense Account as per Form 1120  in the P&L?  What GL account should be set up if the Income Tax feature is not available?  Thank you.