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PDtax
PDtax, CPA firm owner
Category: Financial Software
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Experience:  Have used almost every software package available.
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In quickbooks right now, for the company file, we are recording

Resolved Question:

In quickbooks right now, for the company file, we are recording tax payments as a payments to an account, but now it has a large negative value. What would be the best way in quickbooks to categorize IRS tax payments so that they don't show as expenses but that they do show as payments to reconcile bank account?

And what type of tax payments are deductible? Are state tax payments deductible?

Thanks!
Submitted: 1 year ago.
Category: Financial Software
Expert:  PDtax replied 1 year ago.

PDtax :

Welcome to the site. I will be helping you today.

PDtax :

Set up the payments as going to an asset account, like Prepaid Federal Income Tax.

PDtax :

The only deductible taxes will be state taxes paid in the year in question (state taxes paid in 2012 are deductible in 2012).

PDtax :

Thanks for asking at Just Answer. Please feel free to ask follow up questions if needed.

PDtax :

When you are satisfied, positive feedback lets the site management know (and lets me get paid). Thanks. PDtax

Customer:

As an asset account, it won't show as a negative, right?

Customer:

So, now state related income, payroll, etc. taxes are deductible, right?

Customer:

401k contributions would be deductible for portion of company, right (for s corp)?

Customer:

Thanks

Expert:  PDtax replied 1 year ago.
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Expert:  PDtax replied 1 year ago.
Customer: As an asset account, it won't show as a negative, right? Correct. Customer: So, now state related income, payroll, etc. taxes are deductible, right? Yes. Federal payroll taxes are also deductible. Customer: 401k contributions would be deductible for portion of company, right (for s corp)? Yes. Customer: Thanks...You're welcome.

PDtax
PDtax, CPA firm owner
Satisfied Customers: 1889
Experience: Have used almost every software package available.
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