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New to quick books. I work under the contractor industry scheme (CIS) which means all my invoices paid to me are automatically deducted 20% Income tax from the main contractors.
Obviously quickbooks only sees the net income on my transactions, how do i manually add the income tax already paid so it shows as being deducted from the tax due on the summary pages?
I am using quickbooks self employed.
Found this, its old, but I think it still works.
How to enter tax withheld -
Response from orignal poster.I entered the full amount in sales receipt and then did the following in record deposit:Deposit to: The bank account our part of the paymet got transferred to.Line 1-Received from: Customer:Job-From Account: Undeposited Funds-Amount: Full amount of payment from AirBnB incl what was sent straight to IRSLine 2-Received From: blank-From account: IRS Tax payments equity account.-amount: (minus) -withheld amountOn checking the income statement the full amount shows up.On checking the bank account in CoA only the amount put into our bank shows.Does that look correct to you?Thank you.
Yes, that's correct!
Additionally, makes sure it's a separate equity account than the payments you make directly to IRS. You report the withheld amount slightly different for tax purposes than the amounts you pay directly.