Record tax payment

stuety · ‎September 19, 2022

I paid our federal taxes for our LLC in April for the 2021 return. How do I record this transaction that was made through our credit card? Does it get recorded to Taxes and Licenses? if not, what account do I record it to?

thank you

Mark_R · ‎September 19, 2022

I'm here to help record your federal tax payment in QuickBooks Online (QBO), @stuety.

You can go to the Payroll Tax menu to record your tax payment. Here's how:

Sign in to your QBO account.
Click Taxes from the left menu, then select Payroll Tax.
Go to the Payments tab.
Find the payment and choose the option Mark as paid, then select Yes, mark paid.

Please know that when recording payroll tax payments, it won't affect the bank register, but it will clear the taxes from showing due and record the deposits. That said, there isn't an account affected by it.

I'm adding this article for more details: Recording prior tax payments.

Let me know how it goes by leaving a comment below, @stuety. I want to make sure you're taken care of.

You may encounter underpaid payroll taxes in the future. This article will help you resolve it: Resolve a payroll tax underpayment.

Have a good one!

stuety · ‎September 20, 2022

Thank you for your quick response. This was income tax paid on schedule C, is that considered a payroll tax? I apologize if that's a dumb question. Also when I navigate to that location, I don't have the option to go to payroll under taxes. see attached screen shot.

thank you

katherinejoyceO · ‎September 20, 2022

Thanks for the additional information, @stuety.

In QuickBooks, if you're self-employed, you use a Schedule C form to report your self-employed income and expenses, also known as Form 1040.

You can check out this article to learn more about Schedule C categories and how to categorize transactions in QuickBooks.

However, if these are taxes accumulated when running payroll for employees, I'd recommend following the steps shared by my peer above to record tax payments made for prior tax periods .

You also want to check out this article to get more ideas on how to record prior tax payments in QuickBooks Online.

Keep in touch again if you have additional questions about recording your federal taxes. We're always around to be your QuickBooks guide.

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valerie47 · ‎June 22, 2023

In my bank transactions, I have this payment that came out of my bank account for the taxes I owed from 2022 that I paid in full. I'm not sure which category I put that under? I have estimated taxes set up but not sure how I record the full payment due from last year's tax return.

Rainflurry · ‎June 22, 2023

@valerie47

Unless you are a C-corp, estimated tax payments are a personal transaction and those payments should be made personally. In this case, record the transaction to your Owner's Capital equity account (if you're a sole proprietorship) or Shareholder Distribution equity account (if you're a 100% owned S-corp). In the future, issue a payment to yourself, then make the payment from your personal account.