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How to categorize WA State B&O tax and Use Tax as expenses in federal return?

I am a sole proprietor still figuring out this whole business tax thing....I'm trying to enter taxes paid to the State of Washington in Quarter 1 2019 for Use Tax related to items I purchased from out of state, and also B&O taxes.  How do I categorize these two types of taxes?

If I select "State Taxes" as the category, it isn't counted as a deductible expense on federal returns, which doesn't seem right...

1 Comment
QuickBooks Team

Re: How to categorize WA State B&O tax and Use Tax as expenses in federal return?

Hi there, @eleniontolto.

 

In QuickBooks Self-Employed (QBSE), taxes are categorized in line with the IRS. Let me provide additional details about this. 

 

There are categories in QBSE that follow the taxes and deductions mandated by the IRS. But these categories are for tracking purposes only. 

 

Also, the calculation of your state taxes is done outside of the system. 

 

If you have TurboTax, you may also refer to their TurboTax Support. This way, they can help you with other concerns regarding your state tax calculation. 

 

Feel free to click on the Reply button if you have any other questions. 

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