How do you categorize an estimated tax payment on QB? I know it’s not an expense, what is it?

That was super helpful, resolved thank you. Just so I know where can I track owner’s equity in my QB?

Also what is the difference between the terms “owner’s draw” vs “equity”?

There's no difference, DGMD.

An owner's draw is an equity account account used by the system. This way, it  can track withdrawals of your company's assets to pay an owner.

Also, if you want to create a check from an owner's equity account, you can check this guide: Write a check from an owner's equity account.

I'm just around if anything arises. Take care!

how do I transfer the estimated taxes I paid for 2020  to an expense account.  If I leave them as an equity account it makes my balance sheet incorrect.  

It's a pleasure to have you here, @AZ13. I can share with you some insights about transferring the estimated taxes to an expense account.

To do this, we can create a journal entry. This helps you move money between accounts and force your books to balance in specific ways. That being said, I suggest consulting an accountant and follow their advice to ensure that your book is accurate. 

To create a journal entry, here's how:

1. Go to the + New button.
2. Choose Journal entry.
3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
4. On the next line, choose the other account you're moving money to or from. Enter the same amount in the opposite column.
5. Check the amounts.
6. Enter information in the memo section.
7. Click Save and close.

For additional reference, feel free to view this article: Create a journal entry in QuickBooks Online.

In case you'll want to pay the taxes electronically in the future, you'll have the option to pay directly to eftps.gov or within QuickBooks. For detailed steps, see the Make payments online section through this article: Estimated Taxes.

Keep me posted if you need more help with estimated taxes in QuickBooks. I'll be around to help you. Have a nice day.

there is no estimated taxes category under equity in qbo.

Thanks for joining us here, @essentialflolors.

Let me share some insights about estimated tax in QuickBooks Online (QBO). Since estimated tax is a personal expense, you'll want to create a new Equity account and choose Estimated Taxes as Detail Type.

Please refer to my previous post above for the steps and screenshots.

I'm attaching these handy articles to guide you along.

• Learn about the chart of accounts in QuickBooks.

• Learn about account detail types on the chart of accounts.

• How to organize your chart of accounts.

If you still have questions about account types or category in QBO, please drop below and I'll be glad to answer them for you. Take care and have a wonderful day ahead.

Sheila, thanks for the tips.  I have set up the "Estimated Tax: as an "Equity" account, per your instructions.  I made the Jan 15 estimated tax payment and categorized the downloaded transaction from the bank as an "estimated tax". Now the Estimated Tax account has a negative balance on my balance sheet.  How should I close it?

What if they are estimated tax payments for the business?  Then they are not personal.

Can you please help me understand this concept regarding Estimated Taxes paid in prior year? After the end of the year on January 1, I have to balance the balance sheet. As such I understand  I have to zero out the equity accounts. Otherwise the balance sheet is out of balance.

So I will do a journal entry. I will deduct or debit the equity account labeled estimated taxes. Where should I credit the same amount. Does this go in to Retain Earnings (equity account) or does it go somewhere else? 

If you can please include screenshots of the journal entry with which account to debit and credit, that would be wonderful

There is no drop down category for Estimated Taxes in Quickbooks Desktop 2021 Mac. I created Equity acct, but payments by me from my checking acct show as negative balance Not sure how to offset this. If I create and pay a bill to the Equity acct, the payment shows up as an additional negative balance. How do I enter an Increase to this account which would represent Estimated tax due?