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gregsterner
Level 1

Uncategorized income

I have many different sources of uncategorized income for 2021 that I have all input under Uncategorized Income. My CPA wants me to segment each source. I have a PPP Loan, CARES Tax Credits and County Stimulus Relief Fund sources. How do I categorize each as an income source?

1 Comment 1
Pete_Mc
Community Champion

Uncategorized income

Yes, I was always told that "Uncategorized Income" was a one time thing.  And maybe even then not such a good idea.

 

You simply need to go to your Chart of Accounts and create Sub Categories under Income the way your Accountant wants the income shown.  Make as many as you need (but don't go crazy), just make sure they are all Sub Accounts.  Then go to the Deposits and change the Category from "Uncatergorized" to your new Income:XX Co Stimulus, etc. to the appropriate categories you created. 

 

And is ALL of the money actually income?  You might check to see if s/he really wants your PPP Loan in Income or wants to deal with it some other way.  It is excluded from Federal Income Taxes from what I was told by someone I know that got it.  But maybe it goes in as Income and then there's another line item to credit the amount on the Tax Form.

 

You might also document what you did and give that to your Accountant with all the other year end info.  Then if there are any questions about the various Income, they won't need to call you.

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