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mikelu9661
Level 3

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.

12 Comments
RaymondJayO
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

mikelu9661
Level 3

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.

taxpro2000
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.

dawnbrodehl
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

ReyJohn_D
Moderator

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.

sonenshinem
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]

lavenderrose
Level 1

How to record paid Estimated Tax Payment

I have a question.  When I pay the last quarter in January of the following year - for example I am paying by January 15, 2021 my last quarter self-employed federal taxes for the last quarter of 2020.  I know how to list it but does payment count as a 2020 or 2021. If I list I paid it on January 15th then the payment is being deducted out for current year not the 2020 year which it is a payment for.  I know you undersatnd what I am asking.   All other quarters are listined under 2020.  For example quarters 1-3 are listed under year 2020. So is quarter 4 listed also as a payment for 2020 even though I actually paid it in 2021?  Or is it listed and recorded as a transaction for 2021? 

Charies_M
Moderator

How to record paid Estimated Tax Payment

Good day, lavenderrose.

 

I'm here to share tips on how to record paid Estimated Tax Payment in QuickBooks Self-Employed (QBSE).

 

Here's how you record the payment in QBSE so the tax payment will be accounted for Q4 2020:

 

  1. Go to the Transactions menu.
  2. Choose Add transaction.
  3. Enter Q4 2020 (Date and fiscal year) quarterly federal tax payment in the description field.
  4. Choose Select a category, then Taxes. Select a tax cateory.
  5. Hit Save.

 

Find out more about making federal estimated tax payments each quarter: Pay federal estimated quarterly taxes in QuickBooks Self-Employed.

 

You can run the Tax Summary or Tax Detail report to review your tax activities and information. To do that, just go to Reports and select either one of the reports mentioned. Choose a tax year and click View.

 

If you need other references for future use, you can check out these helpful links: 

Get back to me if you need help with something else. I'd be happy to assist. Enjoy the rest of the day!

wdrpiper
Level 1

How to record paid Estimated Tax Payment

In a related question, I use QB Self Employed and it estimated my taxes high, which we carried forward to 2021.  How do I let QB know that a portion of the estimated taxes has already been covered?

AileneA
QuickBooks Team

How to record paid Estimated Tax Payment

Thank you for joining the thread, wdrpiper.  

 

Since in the Community we have limited access to pull up your account. I suggest reaching out to our customer support team. This way one of our representatives will be able to pull up your account and initiate a screen-sharing session to take a look at your taxes.  

 

 Here's how: 

 

  1. Select Assistant from the top bar. 
  2. Enter questions. 
  3. Click Talk to a human
  4. Choose a way to connect with us.  

 

 ​​​​​​Also, I’m adding a guide that lists our support hours and calls me back options to fit our customers' schedules: Office hours.  

 

For additional insights, you may check out these articles:   

 

 

Moreover, in case you need tips and related articles in the future about the "How Do I" steps in QuickBooks Online, visit our QuickBooks Community help website for reference: QBSE Self-help.    

 

Leave a comment below if you need anything else. We'll respond as soon as we can. Stay safe!

DGMD
Level 1

How to record paid Estimated Tax Payment

Can you expand on this? If i pay the IRS my estimated taxes from my business checking account, what category should it be listed as? 

drchance
Level 1

How to record paid Estimated Tax Payment

Why?

 

Why do I have delete a transaction then add it on another date to "trick" QBSE?

 

The QBSE monthly subscription cost keeps increasing and yet this simple accounting issue has been ongoing for years. You could even just give me a checkbox to say that this Q4 estimated tax payment is for the prior year?

 

Look at this recent support chat. I'm being told to actually make the transaction date specifically 1/15/2021 so that QB will apply it to 4Q2020. Unbelievable. I'm not even going to try this ... I'll just post-date for 12/31/2020.

 

Me: On 1/12/2021 my 4Q2020 estimated check payment was processed. QB treats this as my 1Q2021 estimated tax payment. In the past, QB support would help me post-date the check to 12/31/2020 which would "trick" QB and the check would then become my 4Q2020 estimated taxes

Support: You can exclude the 1/12/2021 transaction and manually add the transaction to Jan 15, 2021

Me: So you're saying if the check processes on exactly January 15 each year, it will be automatically be applied as an estimated 4Q tax for the previous year? It won't apply the payment to 4Q2020 when it was processed on January 12th ... but if I move it to January 15th, it will apply the payment to 4Q2020?

Support:  Yes. Since the due date for Q4 for 2020 is Jan. 15. There might be instances that when you pay before the due date it will not reflect for Q4 for 2020.

 

 

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