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Level 1

Is it possible to mark a business expense as not tax deductible? I already wrote an expense in my 2019 taxes, but I am still paying off the credit I used to buy it.

To be more specific, lets say the item was around $3,000, I chose to take deductions over the next few years instead of all at once because it was my first year in business. However, I paid for the item with a credit card and I am still making payments every month from my business account. To my knowledge it would be tax fraud to deduct the credit card payments since I have already deducted the amount before. But if I just "exclude" the amount, then QB does not calculate my profit correctly. How can I exclude this from deductions, but not from my expenses?
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QuickBooks Team

Is it possible to mark a business expense as not tax deductible? I already wrote an expense in my 2019 taxes, but I am still paying off the credit I used to buy it.

Hi there, @christian-antley.

 

Currently, we're unable to mark an expense as non-taxable in QuickBooks Self-Employed. Transactions that are saved under Business expenses will automatically calculate the estimated taxes.

 

Since you've mentioned that this is a non-taxable item, you can categorize it either as Personal or Exclude the whole transaction from QuickBooks.

 

Before doing so, make sure to consult with your tax accountant for professional advice to keep your reports accurate.

 

Here's how to exclude it:

  1. Go to the Transactions menu.
  2. Check the transaction boxes.
  3. Select the Exclude🚫 icon.
  4. Click Apply.

 

I've added an article as your reference to learn more about the federal self-employment taxes and how QuickBooks calculates them: How QuickBooks Self-Employed track self-employed taxes. It includes the calculation of other types of taxes.

 

Feel free to place a comment down if you have additional questions. I'm always around to help. Have a great day!

Highlighted
Level 1

Is it possible to mark a business expense as not tax deductible? I already wrote an expense in my 2019 taxes, but I am still paying off the credit I used to buy it.

Thanks for the help! Can I talk to a tax professional straight through the help panel in quickbooks?

I guess my main problem is that I want quickbooks to keep track of that expense but not count it towards additional deductions. That may be impossible, but I just want to be sure.

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Moderator

Is it possible to mark a business expense as not tax deductible? I already wrote an expense in my 2019 taxes, but I am still paying off the credit I used to buy it.

Hello there, @christian-antley,

 

Thanks for getting back to us about your concern. The posting of your transactions to the tax reports may differ depending on the type of expense and the category used when you add the entry in QuickBooks Self-Employed.

 

The system uses different categories to determine whether a transaction shows in the Profit and LossTax Summary Report or Tax Details Report. You will see more about this information in the  Learn how Schedule C categories appear on reports section of the linked article.

 

Another option if you're using TurboTax Bundle, is you can add a note that this entry is non-deductible, and you can request our agents to help you exclude it when filing your estimated taxes. Reach out to our support team for any help related to tax calculations and filing concerns.

 

In the meantime, here are some links to help you prepare your tax returns in QuickBooks Self-Employed:

 

If you have any questions about this topic or need anything else with QuickBooks, let me know in the comments below. Have a lovely day!

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