I'm sole prop LLC. How do I categorize IRS payment $7000+? Bus or Pers? Exp or Income. I saw online "Draw", but don't see that anywhere.

Greetings, @robt777burke. I’ll provide information about this below.

You can categorize the $7,000 payment as Business if it’s directly related to your business and is included in your business operations. Alternatively, you can classify it as Personal if the payment is solely for your personal obligations.

Once you've paid your IRS tax payments, you can categorize the payment as Federal Estimated Taxes in QBSE. Since Estimated Tax Payments fall under the expense category, it’ll be recorded as an expense in QBSE. However, if you're uncertain which category to choose, it’s best to consult with your accountant for more specific guidance.

Here’s how to:

1. Go to the Transactions menu, and locate the IRS payment.
2. In the Type section, select whether the payment is Business or Personal.
3. Then, select Federal Estimated Taxes as the Category.

We’re always here to help you if you have any other concerns.