Employee advance deduction tax reduction

Thanks for dropping by here in the Community, @dol. I'll show you where  you can get the information that you need.

When you process the advance payment deduction for your employees, there's a link there that you can visit to know what areas are affected by the employee advance deduction.

These are the steps:

1. From the Workers tab under the Employee list, click on the employee's name.
2. Click the Edit (Pencil) icon in the Pay section.
3. Go to the Does Employee name have any deduction? section.
4. Click on Learn more about deductions.
   
   

For visual reference, you can refer on the screenshot below.

I also recommend you check on your settings if you have your company set up to Post-tax or Pre Tax. Please know that if you've chosen Pre Tax deduction, this reduces your taxable income.

You might also want to give this article a visit, it's about supported pay types and deductions.

As always, you are welcome to post here again if you require assistance with your QuickBooks-related concerns. Keep safe and Stay hydrated!