Welcome to the Community forum, hungryhorse.
QuickBooks Self-Employed (QBSE) is a product which help self-employed individuals in tracking your business related transactions (income and spending). You will be able to claim your home office and mileage deductions as well.
We calculate estimated taxes for self-employed users with a service-based business. Calculation of your taxes is based on three main things:
Normally, estimated payments seems high due to projections of profit for the entire year. Since a tax estimate is not for the money you have already made, but for the money you will likely make for the rest of the year.
I’m including some helpful articles that contains detailed information about estimated taxes:
If you need any help about self-employment taxes, let me know. I will be more than happy to further assist you
Again this is not for the year only Quarterly estimate. I include payments I make on my assets and your Tax estimator doesn't count them as an expense but doesn't deduct them at all result has gotten even worse. I am now down to 3k profit and I still owe more Tax's then I even made in profit this is impossible. has me oweing over 10k for the first Quarter of 2020 with 3k income. Go figure also would be nice to figure this asset's depreciation as it is a Truck but as it is used Commercially licensed 100% business use it must be classified as a fixed asset with a fixed depreciation not a mileage write off. Id like to be able to also include and track my periderm. Those 2 days I could be working making money not doing a quarterly Tax filing like it was the end of the year. from what I have seen your quarterly estimator doesn't work as advertised neither does the ability to track expenses and write offs. This book system isn't really much more then a limited ledger. as it doesn't track a lot of expenses. as it is your quarterly estimator not being able to track or calculate these deductions would put me paying tens of thousands of dollars I don't owe that could be used as working capitol already has me paying over 10k I don't owe and its only first quarter..
As soon as I enter more expense's it takes them off of my net income but doesn't remove them from my Quarterly tax estimate. also I need to be able to track a fixed assets depreciation and periderm both seem to be unable to do. as my fixed depreciation of $1320.00 per month/ Quarter $3960.00 and periderm $50 per day $4500 per quarter. is a huge overpayment I would be making well over $10,000 in over payment each quarter. I am down to 3k income and owing over $10,000 in Tax's first quarter. This is wrong tax rate on $3,000 is not $10,000 now my tax rate is over 300% of my income. I am ready to quit my job I am not paying the IRS over 3x more money then I make. Your estimator is stuck working on gross income and failing to recognize business expense's then calculate based on net income. and it cant track or work on deduction items like the ones I mentioned instead those would have to be done at end of year when done on TurboTax. simply leaving me over paying on tens of thousands of dollars I shouldn't be paying tax's on.
Thank you for reaching out to the Community.
As the actual data comes in, we will use more of the actual data instead of our projections. You can change the estimated taxes manually in QuickBooks Self-Employed by going to our projections from the Quarterly Estimated Taxes page.
For more information about depreciating assets in QuickBooks Self-Employed, you can refer back to this article for help: How we calculate estimated tax payments.
Also, to ensure that your books are accurate, I suggest reaching out to an accountant as well.
If you have any more questions or concerns, please don't hesitate to reach back out. Have a good weekend!