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Level 1

Why aren’t my quarterly taxes accurate?

I am self employees and use Quickbooks to keep up with my financials and taxes. Presently Quickbooks is not updating my quarterly taxes. I know I owe more than it is saying and don’t want to be hit with a giant payment in April. Is there any way to make it update that I am missing? 

1 Comment 1
QuickBooks Team

Why aren’t my quarterly taxes accurate?

It's great to have you here in the Community, @Davenport. I have some insights that could help you get a more accurate estimate.


QuickBooks Self-Employed (QBSE) estimates your federal income and self-employment tax by applying income tax rates to your total self-employment taxable profit and by applying Social Security and Medicare tax rates to your business taxable profit.


To get a more accurate estimate, here's what you can do:


  • Start by adding all your business income and expenses and assigning them to different categories. QB will then calculate your self-employed income by subtracting your expenses and deductions. This will give you a clear idea of your business's profit. Additionally, QB uses your current profits to estimate your income for the rest of the year, helping you plan accordingly.
  • Moreover, fill out your tax profile on the Tax Estimate page. On this page, you can enter any income that is taxed at ordinary income rates such as wages, salary, etc. Please note that you should not include income from more complex tax situations where income might be taxed at different rates such as long-term capital gains from the sale of stock, certain retirement income, etc. As of now, the tool isn't able to estimate tax on income outside of your business that could be taxed at different rates.


For more detailed information, you can visit this article: Automatically estimate your income tax in QuickBooks Self-Employed.


Here's an article that can help you get ready to file your taxes with QBSE: QuickBooks Self-Employed annual tax guide.


Should you have any follow-up concerns regarding your quarterly taxes, don't hesitate to hit us up. Have a good one!

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