I'll provide some information about splitting transactions into different categories.
The multiple split feature allows you to split transactions into more than two Schedule C-categories, designate a part of the transaction as personal, and set split rules for future transactions.
When you record a business expense, QuickBooks tries to assign it to the correct category. That could be the reason the transactions split into different categories didn't show under expenses.
However, you can change it by tapping the blue field that appears right after you swipe the transaction to the left.
For additional information, you can check this article: Categorize and edit transactions in QuickBooks Self-Employed.
Please refer to this article to see different information on how QuickBooks Self-Employed tracks your business income and taxes: QuickBooks Self-Employed Overview.
Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.
Let me further explain:
I have QuickBooks linked to my PayPal account. When I’m categorizing PayPal fees I notice that both “eBay sales tax“ and PayPal transition fee are combined into one amount.
If I use the split option to categorize each amount separately (transaction fee and sales tax) however under business expenses “sales tax” does not show as a category and I can’t find where those amounts went?
I appreciate you getting back to us and clarifying your concern, @FixThis.
It's possible that you created a rule for your PayPal transactions that's why the amounts aren't showing. Let's review the rules and verify it from there.
Please repeat steps 2 to 4 for your sales tax. Once done, check the transactions from the Transactions page.
I'm adding this article to learn more about rules in QBSE: Create rules to speed up reviews in QuickBooks Self-Employed.
You might also want to check out this article to learn more about categorizing transactions: Categorize and edit transactions in QuickBooks Self-Employed.
Please know you can continue to reach me here with any additional questions. Thanks for coming to the Community, wishing you continued success
Thanks for your response. I checked and there are no rules applied. Also I’m using the app if that makes any difference.
Another thing I noticed is when splitting, neither the transaction fee or sales tax show up under expenses. However I change it from split to business then it shows up but the amount isn’t split like I need it to me. I’ve attached a screenshot example of one transaction.
Hello again, @FixThis.
I appreciate you for following the resolution provided by my peers. Also, the screenshot shared provided a better picture of the issue.
You should be able to see transactions separately after splitting them up. To isolate the issue, let’s log in to your QBSE company using a browser and separate the entry from there.
If the transaction fee and sales tax show up under Expenses, we’ll have to update the mobile device to the latest version. The process can help its overall performance.
To learn more about the process as well as the iOS version, see the Fix mileage tracking issues in QuickBooks Self-Employed for iOS guide. Then, proceed to Steps 4-5 for detailed information.
For Android users, follow the instructions found in Fix mileage tracking issues in QuickBooks Self-Employed for Android guide and perform Steps 5-6.
If none of these suggestions work, I recommend contacting our QBSE Team for further investigation.
For mobile users, follow the instructions in the Contact QuickBooks Self-Employed Support guide.
If there’s anything else I can help you with, leave a comment below. I’ll be right here to assist further. Have a good one.
Thanks for your response. I logged into QBSE from a browser and I noticed if I click on “expenses” the splits show up in the different categories, but under expenses there’s no “sales tax” or “transactions fee”. There is however “everything else” which I’m guessing has those two in there but I can’t expand the category when I click on it. Every other expense does expand. I’ve included pictures
Thank you for the screenshot added, @FixThis.
The Expenses field on the Dashboard displays the top 3 or more specific expense categories that you're frequently using. The Everything else section displays the total for all other categories that were not mentioned. It's not expandable since it's a cumulative list.
To locate the split transactions you're looking for, you can filter the Transactions page per expense category or check it from the Profit and Loss report.
To filter the expenses per category from the Transactions page:
To open the Profit and Loss report:
Post again if you have any other questions. I'm always here to help. Have a good day!
Thank you. I’m not seeing these options in the app though? I will be using it more than from the browser. Is there a way to see them in the app?
I notice in the app under expenses there’s a “other business expenses” when I click on it, it shows the transaction fees but not the sales tax. So it looks like the app needs updatingor am I missing something?
Also in the browser under expenses from reports, transaction fees and sales tax does not show up. I’ve included a pic
There are different expense categories that will be tagged as Other business expense on the reports. You can check out this article on how these categories are displayed on your reports: QuickBooks Self-Employed Schedule C Categories breakdown.
Meanwhile, sales taxes will show as Taxes and licenses in the Profit & Loss, Tax Summary, and Tax Details reports.
If you still need assistance in pulling up your reports or encountered unexpected results, I'd recommend contacting our QBSE Support Team. They can review your account and provide additional details on how to correct it. You can follow the steps provided by Rasa-LilaM to reach them.
We'll be around if you need anything else.
Thank you appreciate it. Just a couple questions that came up:
Is there an option to manage refunds? Or should I exclude them to cancel it out rather than have a refunds section to report as an expense?
Hi there, FixThis.
You have an option to include and categorize it accordingly or exclude it if the refund is not part of our financial and Schedule C report.
I'll show you how to exclude:
I'm attaching the articles again that were given by my colleagues on how to categorize transactions:
Feel free to get back to us if you need anything else. You take care and stay safe!
Thank you. I noticed in the app that for negative amount transactions (like a refund) I can swipe left and a blue income option (instead of the normal green color) appears. Will that deduct from total income and just cancel out the refund?
Thanks for actively responding, @FixThis. To clarify, when you exclude the refund, it will not be counted as income nor expenses. It will be moved to your excluded transactions.
Additionally, the green indicator is on the income side while the blue indicator is supposed to be for the expenses. If you're seeing this on the opposite, I'd recommend you clear the cache of the mobile app to eliminate the accumulated junk files. Here's how:
You can also free up the storage without deleting the documents and data by selecting the Offload App within your phone settings. Here's how:
For future reference, you can also update your devices to latest release to get the best experience of using the app. Refer to this guide for more mobile apps troubleshooting steps: QuickBooks Self-Employed Mobile Troubleshooting Steps.
Feel free to message again should you have more concerns about anything else. We're always delighted to assist.
I’m not seeing an option to include refunds into a category. I’ve attached a pic showing what I mean by swiping left on a negative value amount where it shows a blue color “income”
I've tried it and it seems to subtract from total income. Does this count as a refund/exclusion? Again this is on the app. Not sure if the webpage has a different way to categorize refunds
A pleasant day to you, @FixThis.
Allow me to provide some clarifications regarding categorizing refunds and about the blue income button that you're seeing.
At this time, QBSE only tracks business expenses and income for estimated tax calculations. Therefore, having a specific category for refunds and credits isn't available. This is because there's no profit nor loss when it comes to refunds and reimbursements.
That being said, there's no need for you to track the amount from eBay as income. Instead, you’ll need to categorize the refund as personal expenses or other expense category. Make sure to mark them as excluded once it’s downloaded into the system so this will not be tracked from the estimated taxes.
To give you more details on how taxes are calculated and recorded in the system, please check out these links below:
I'll be around to help if you have further question about this or with QBSE. Have a lovely day!
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Ok but if I track a negative amount that shows up, I notice that the math is automatically calculated meaning it subtracts the (refund only this example) from total income. So it seems to cancel it out. Should I still categorize it as an “other expense” as you suggested?
Allow me to step in and answer your question regarding categorizing your transactions in QuickBooks Self-Employed.
Yes, you can categorize your transactions as other expenses. Then make sure to mark them excluded once downloaded. This way they'll not be included in your estimated taxes since this is for tracking purposes.
The following articles outlined the steps for excluding your transactions as well as how the system calculates your estimated taxes in QuickBooks Self-Employed:
As always, feel free to visit our Help articles for QuickBooks Self-Employed in case you need tips and related articles in the future.
If you require more information about this topic, please let me know. I'd be more than willing to lend you a hand.
Let me further clarify as I’m getting more confused with this refund thing.
I have my PayPal account linked to QBSE app. I’m using it to categorize every transaction. I came across a negative value Ex. -$25.00 which was a refund issued to a customer through my PayPal.
If I swipe left on the app I get a blue colored income option. If I continue with this option I notice that it subtracts the $25 from my total income.
Is this all that’s needed as it seems to cancel it out or should I be categorizing the refund to report it as a separate expense? I’m unsure as why excluding it is suggested
Categorizing a negative amount as an income may affect how your estimated taxes are calculated, @FixThis.
Excluding your income and expense transactions will ensure that it will not be included in the calculation of your quarterly estimated taxes. Let me share some information on how to make sure that both of your income and expense transactions are tracked properly in QuickBooks.
First, the available expense categories in QuickBooks Self-Employed adheres to the categories laid by the IRS in your 1040 Form Schedule C Part II. You'd want to itemized or manually enter the total refund amount you've received or provided in Part I line 2 of your Schedule C during the filing of your annual taxes.
That being said, instead of categorizing the refund you issued to your customer, you may want to exclude it. Then, locate the income transaction you've initially recorded and marked it as excluded. By doing so, you'll not incur duplicate claims of deduction when IRS audit your list of income and expense transactions. You can visit this IRS page for more insights: What you need to Know about Schedule C and other small business taxes and tax forms.
Lastly, I'd recommend consulting your accountant so you'd be guided accurately in tracking your income and expenses transactions. You can also visit the TurboTax Self-Employed AnswerXchange community forum for more tax-related questions.
I'm always here if you have other questions about managing your transactions in QuickBooks. Have a great day ahead!
Thanks for the clarification. Just one more question, do I need to exclude the initial income as well as the refund to that initial income or can I just exclude the refund and QB detects the income linked to it and auto excludes it?
Thanks for posting back, FixThis!
Yes, you will have to exclude both the refund and the initial income transaction.
By the way, I'd like to share the steps to check the QBSE references with you:
Let me know if there's anything that I can help you with your transactions.