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davidfawcettphd
Level 1

I'm using QB Online and want a home office deduction. The instructions say to click "Taxes" then "Annual Taxes" but my only option is "Sales Tax." How do I set it up?

 
1 Comment 1
ReyJohn_D
Moderator

I'm using QB Online and want a home office deduction. The instructions say to click "Taxes" then "Annual Taxes" but my only option is "Sales Tax." How do I set it up?

You'll find the Taxes option in QuickBooks Self-Employed (QBSE). This is why you're not seeing it in QuickBooks Online (QBO).

QBSE is used to manage both personal and business accounting activities and taxes while QBO is for tracking the transactions of business accounts.

 

You can use either the Expense or the Journal entry feature in QBO to record your home office deductions. However, I recommend consulting with a tax expert for the best advice. This way, you won't mess up your valuable transactions.

For the first option, here's how:

 

  1. Click the +New button, and then choose Expense under the Vendors tab.
  2. Select a vendor's name under the Payee drop-down ▼.
  3. Pick the Payment DatePayment Method, etc.
  4. Fill out the needed info in the Category or Item Details section for your home deduction expenses.
  5. Click Save or Save and close once done.

 

To create a journal entry, here are the steps how:

 

  1. Click the +New button, and then choose Journal entry under the Other tab.
  2. Select a journal date, and fill out the AccountsDebits and Credits columns, and other fields for the home deduction transaction.
  3. Hit Save once ready.

 

You may want to check out the Employees and payroll section of this article to gain more insights about managing payroll: Community help articles.

 

Fill me in if you have more questions about managing your taxes or anything else related to QuickBooks. I'm around to help. Take care and have a nice day.

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