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How to account for 2017 Estimated Tax Payments in Quickbooks Self-employed

I have the Quickbooks Self-employed and Turbotax bundle.

In 2017, I had Sched C income on which I paid estimated taxes. How can I manually add those payments into Quickbooks Self-employed?

 

Currently, QB only allows me to pay my estimated taxes out of the software. I can't seem to find a way to enter the amounts that I have paid outside of the system. 

 

Help!

Solved
Best answer 01-11-2018

Accepted Solutions
Super Contributor **

Re: How to account for 2017 Estimated Tax Payments in Quickbooks Self-employed

First, I'm a CPA. Personal tax payments are never a company expense. You should set up an equity account for "draws" or "distributions" or "tax payments" and code the tax payments there. In equity. This is for payments made with company cash that needs to be recorded in the company checkbook. Since YOU will pay the tax on YOUR return, it is not a company expense. Treat it like you wrote yourself a check, and then personally wrote a check to IRS. The end result is the same: these are YOUR taxes. If you didn't pay the taxes with company cash, then there is really no need to track them in QB. QB is for the company. Of course, you would need to otherwise keep up with what you paid both in and out of QB. If you really wanted to track it in QB to keep it all in one place, you would need to JE credit to "owner capital" (an equity account) and debit "tax payments." This would allow you to run a report on "tax payments" that has everything paid both with and without company cash, and doesn't impact the books in any way.
2 Comments
QuickBooks Team

Re: How to account for 2017 Estimated Tax Payments in Quickbooks Self-employed

Hello spobjecky,

 

Welcome to the Community. I'm glad to offer my assistance so you can get those estimated tax payments entered.

 

Schedule C Estimated Tax payments are recorded in QuickBooks Self-Employed three ways. Here's an article that explains each way the entries are made: https://community.intuit.com/articles/1629827-schedule-c-estimated-taxes.

 

My suggestion would be to record these tax payments as Expenses and categorize them accordingly. I'd consult your accountant to be sure.

 

This link will take you to the QuickBooks Self-Employed email window if you'd like to relay your question to an agent: https://help.quickbooks.intuit.com/en_US/contact.

 

I hope my response helps. Please let me know if I can lend a hand with anything else.

Super Contributor **

Re: How to account for 2017 Estimated Tax Payments in Quickbooks Self-employed

First, I'm a CPA. Personal tax payments are never a company expense. You should set up an equity account for "draws" or "distributions" or "tax payments" and code the tax payments there. In equity. This is for payments made with company cash that needs to be recorded in the company checkbook. Since YOU will pay the tax on YOUR return, it is not a company expense. Treat it like you wrote yourself a check, and then personally wrote a check to IRS. The end result is the same: these are YOUR taxes. If you didn't pay the taxes with company cash, then there is really no need to track them in QB. QB is for the company. Of course, you would need to otherwise keep up with what you paid both in and out of QB. If you really wanted to track it in QB to keep it all in one place, you would need to JE credit to "owner capital" (an equity account) and debit "tax payments." This would allow you to run a report on "tax payments" that has everything paid both with and without company cash, and doesn't impact the books in any way.