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Level 2

How to record paid Estimated Tax Payment

Hello,

I was wondering how do you record the estimated tax payment you made for each quarter you paid in QuickBooks or is it necessary to even record them.

6 Comments
Highlighted
Moderator

How to record paid Estimated Tax Payment

Let me clear up the confusion for you, @mikelu9661

 

Based on your scenario, it looks like you're a self-employed individual. You can write checks to record the paid quarterly estimated tax payments using QuickBooks Online (QBO). However, this may not be the right product for you. Rest assured that I have another QuickBooks product that fits your self-employed needs. It's necessary to record the taxes to make sure your tax info is accurate. 

 

First, I'd suggest checking out the features of QuickBooks Self-Employed (QBSE). This software will help you track your business-related transactions. Also, you can make quarterly estimated tax payments from there. Then, file your Schedule C along with your annual tax return (1040). For more information, visit this article: QBSE Overview

 

Once reviewed, I recommend signing up for a QBSE account. After that, you can record your estimated tax payments in the program in three ways. I'll guide you how. 

 

For the first option: 

  1. Go to Taxes from the left menu. 
  2. Set the year. 
  3. Select the Quarterly tab. 
  4. Choose the quarter you want to mark the tax payment for.
  5. Click Find your estimated tax payments beside Don't see your payment?
  6. Check off the tax payment.
  7. Hit Mark as tax payment.

 

The screenshot below shows you the first five steps. 

MarkAsTaxPayment.PNG

 

Second, let's go to the Transactions tab to check your business spending transaction. Then, manually assign its category from Taxes & Licenses to Estimated Taxes.

 

Third, if you printed a tax payment coupon, we automatically match the spending transaction when it appears in our system. Please take note that we don’t count estimated taxes as “paid” when you print it. For more details, check out this article: Schedule C: Estimated Taxes

 

If you want to pay the taxes electronically, you'll have the option to pay directly to eftps.gov or within QBSE. For detailed steps, see the Make payments online section through this article: Estimated Taxes.

 

Your estimated taxes will appear on the Tax Summary and Tax Details reports. These won't show on the Profit & Loss report. To learn more about this, see the Estimated taxes section through this article: QBSE Schedule C Categories Breakdown. This link provides you more information on where the other accounts will appear on various reports in the software.

 

Moving forward, you may cancel the QBO account once you've verified that QBSE suits your self-employed needs. This ensures you won't have duplicate subscription charges. 

 

I'll be right here to help if you need further assistance. Have a great rest of your weekend, @mikelu9661

Highlighted
Level 2

How to record paid Estimated Tax Payment

Nope, I'm using quickbooks online plus i was also informed that paying estimated tax payment is not available with that product, I will likely be paying it elsewhere, but I like to how how should i record the payment i made within quickbooks after paying it off elsewhere.

Highlighted
Level 2

How to record paid Estimated Tax Payment

You should create a check. Set up an equity account for draws or distributions or tax payments. If you want to track in quickbooks then you need to create jounal entry to owner capital and debit tax payments.

Highlighted
Level 1

How to record paid Estimated Tax Payment

Hello,

I am trying to change how my Q4 2019 estimated tax payments are being assigned.

 

Because these check cleared in January 2020, the system is applying this payment to Q2 2020, but I need it to be applied to Q4 2019.

 

How do I change this?

 

Thanks,

Dawn

Highlighted
QuickBooks Team

How to record paid Estimated Tax Payment

Thanks for joining the thread here in the Community, @dawnbrodehl.

 

Based on your scenario, it seems like you're using QuickBooks Self-Employed (QBSE). Thus, let me share with you some information on how to exclude the Q4 2019 estimated tax payments transactions you have.

 

To begin with, you'll have to locate the downloaded tax payments then exclude them on the Transactions page. This way, they won't be recorded under Q2 2020. I'll guide you on how to do it: 

 

  1. Go to the Transactions page in the left pane.
  2. Check Exclude on then pick Save once finished.

 

After that, you'll have to manually enter these transactions and ensure the date is within 2019. Here's how:

 

  1. Go back again to the Transactions page in the left pane.
  2. Click Add Transaction.
  3. Select a date within 2019, transaction detailsamount, etc.
  4. Hit Save once done.

 

You'll also want to learn more on how to categorize and edit transactions in QuickBooks Self-Employed so you'll know how to manage it: How do I categorize and edit transactions in QBSE?.

 

Please feel free to get back here in the Community if you need more help with your tax payments in QuickBooks. I'd be more than happy to assist you. Stay safe and have a good one, @dawnbrodehl.

Highlighted
Level 3

How to record paid Estimated Tax Payment

If you have quickbooks setup to take bank feeds then you can setup a rule so that when you make the estimated tax payment to the IRS or to the State Revenue quickbooks will record your payment in a balance sheet account.

 

If you don't have quickbooks setup to take feeds then you can simply use the Expense or Cheque function to record your payment.

 

If you need anything, feel free to contact me [email address removed]

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