Recording reimbursed expenses

You are looking at half the story

yes the amount you are reimbursed is income

but the amount you spent is an expense

and on the P&L (which is what feeds your tax return) income is reduced by expense.

so if that portion of your income is the same amount as the expense, it is a wash and there is no increase to net income (the taxable amount)

Thanks for your reply. So does this mean I have to mark these "reimbursed" transactions a certain way in QB so that it doesn't get factored into my estimated taxes?

Hello, @altjx.

I want to make sure that your concerns are addressed about recording reimbursed expense. 

We don’t calculate other types of tax estimates such as state income tax, sales tax, AMT, one-time lump sum distributions and tax credits. If you need to calculate these types of taxes, I recommend to consult with an accountant.  

For more details check out this article about Self-Employment Taxes:

https://quickbooks.intuit.com/learn-support/en-us/tax-topics/self-employment-taxes/00/370051

If you have any other questions feel free to comment below.

---

@altjx wrote:

Thanks for your reply. So does this mean I have to mark these "reimbursed" transactions a certain way in QB so that it doesn't get factored into my estimated taxes?

---

Estimated taxes are calculated on net income, so no you don't have to do anything special other than enter the expense and reimbursement.  net income is at the bottom of the P&L, all income reduced by all expense