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cdeburgh
Level 1
posted
‎September 09, 2024 12:04 PM
last updated ‎September 09, 2024 12:04 PM

QB Self Employed tax estimates incorrect

I use QuickBooks (QB) Self-Employed and am having an issue with my self-employment taxes calculation. Some background:

1) I have a full-time W2 job (unrelated to QB) and a part-time 1099 job that I use QB to manage my finances.

2) In my tax profile, I listed my income for my W2 job so that it could properly calculate my tax bracket for estimated taxes for my QB/part-time 1099 job.

3) When reviewing my estimated taxes on QB, the income tax appears correct, as does the Medicare portion of my self-employment taxes. However...

4) QB estimates my social security (SS) portion of my self-employment taxes to be $0 which is incorrect.

 

I believe the $0 SS estimate is because QB is assuming that the annual maximum SS tax is being taken out by my full-time W2 job. However, because my W2 job is a unique government job, I don't pay any SS taxes. Thus, I should still be expected to pay SS tax on my 1099 QB job. I don't see anyway to "override" the assumption QB makes that I'm already paying SS which is causing it to assume I shouldn't pay any SS taxes on my QB/1099 job. 

Any advice on how I can "force" QB to estimate my SS self-employment taxes?

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1 Comment 1
Erika_K
QuickBooks Team
QuickBooks Team
‎September 09, 2024 02:01 PM

QB Self Employed tax estimates incorrect

Your detailed description of your concern is valued, cdeburgh. I'm here to share some information about how QuickBooks Self-Employed (QBSE) calculates self-employment taxes.

 

QuickBooks relies on the information configured in your tax profile to calculate your estimated taxes accurately. It also gives you an estimate for your federal income and self-employment tax. Moreover, QuickBooks only calculates federal estimated quarterly taxes. It doesn't calculate other types of taxes, such as:

 

 

Considering your government job places you in a special cases category that exempts you from paying Social Security taxes, you'll have to manually calculate your Social Security tax obligations and indicate your exempt status when filing your taxes, either through TurboTax or another method. Since processing manual overrides of the estimated tax calculations within the program isn't available, as the software automatically generates these estimates based on the information you have entered. Therefore, ensure you've accurately reported your exemption status when completing your tax filings outside the program.

 

I've included this article with additional info about tax processes: Automatically estimate your income tax in QuickBooks Self-Employed.

 

I'm always here to provide further assistance if you have any questions or need additional clarification regarding tax-related processes within QBSE, cdeburgh. If you encounter any issues while working with QBSE, feel free to leave a comment below. I'll do my best to provide clear explanations, offer step-by-step instructions, and suggest solutions to help you resolve any problems you may face.

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