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September 14, 2024
Question

My company is LLC. I started contributing retirement fund for myself, TIAA,. Do I need to set up and withdraw it from my business account? Or a personal account?

  • September 14, 2024
  • 1 reply
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Which account shall I use to contribute to my TIAA? 
Personal or business? 

1, Personal??     After receiving an owner's draw in my personal account, shall I contribute it from my personal account?
And then when I file a joint tax with my husband once a year, do I need to claim that I contribute $$$$ for 2024?
 OR
2, Bussiness??    The contribution should be withdrawn from the business account? If so, what kind of category would it be?

Other question
3, I have used the owner's draw' for my daily expenses in the "income" category.  
Do I use the right category" Income"?
Your help would be highly appreciated.

1 reply

September 14, 2024

I can see the importance of correctly categorizing your contributions and other transactions in QuickBooks Self-Employed (QBSE), kannonhealing. Allow me to provide material that'll guide you through doing this.

As every business works differently, we're unable to provide specific account or category recommendations for your transactions. However, you can check the Schedule C Categories breakdown to determine the most suitable match for tracking your transactions. If unsure which category to use, it is recommended to consult with an accountant for further guidance to ensure the accuracy of your books. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help you find one from there.

Additionally, you can use the Business category if the money comes from self-employed work, which includes receipts, sales, amounts reported on 1099 forms, any recovered bad debts, and interest from business bank accounts.

Otherwise, use the Personal category if the money is not part of your self-employed work. This includes income from others who share your bank accounts. Personal transactions and deposits, such as regular paychecks from an employer (as long as it has taxes taken out).

Moreover, you can refer to this article to learn more about categorizing transactions into Personal and Business: Categorize transactions in QuickBooks Self-Employed.

Furthermore, you can review and download reports in QBSE. That way, you'll have a personal copy of the data entered into the program.

If you have further questions about categorizing your entries like retirement funds in QuickBooks, please feel free to reach out. I'm always here to help.