Skip to main content
July 11, 2020
Question

Why do estimated taxes appear as business losses?

  • July 11, 2020
  • 1 reply
  • 0 views

My estimated taxes appear to get counted as Business losses... so my net profit, and thus my total taxes due, looks lower than it really is.

What is the purpose of this? And should you not load estimated tax payments? If you do this, how do you inform QB of how much you've already paid?

1 reply

September 22, 2020

Hoping my answers show here below your questions in blue italics. Assume you found answer .

 


@therealhelgatheviking wrote:

My estimated taxes appear to get counted as Business losses... so my net profit, and thus my total taxes due, looks lower than it really is.

When you pay estimated tax, you are paying expense in advance and expense reduces net profit.


What is the purpose of this? And should you not load estimated tax payments?

All accounting transactions should be recorded following the business activity, ie, payment made.

 

If you do this, how do you inform QB of how much you've already paid?

Account s/b clearly named as estimated taxes so you can show as prepaid when you file tax return.