How to calculate state taxes

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QuickBooks Self-Employed estimates and calculates federal tax payments based on your self-employed income, deductions, predicted future income for the year, and tax profile. It's important to add all of your business income and expenses and categorize them in QuickBooks. It constantly updates your estimates based on what you enter to give you accurate estimates. Here's how QBSE calculates your self-employed taxes: 

• QuickBooks adds up your self-employed income. Then it subtracts any expenses and deductions you can write off. This gives you your business's profit.
• QuickBooks uses your current profits to estimate your income for the rest of the year.
• QuickBooks asks about your tax situation when you first sign up. This creates your tax profile. We adjust for already taxed household income (for example, if you or your spouse is also a W-2 employee) and give you standard deductions.

To learn more about this one, see the How QuickBooks Self-Employed tracks self-employment taxes article. You can also see there what QuickBooks Self-Employed doesn't calculate. If you have more questions about how state taxes are calculated, just contact your state agency for more details. 

To run reports to get your federal estimated quarterly tax payment and annual tax info, check out the Get quarterly and annual tax info from QuickBooks Self-Employed article. Feel free to visit these articles for more insights QuickBooks Self-Employed:

• QuickBooks Self-Employed annual tax guide
• QuickBooks Self-Employed Overview

I'm just one post away if you need a hand with paying your taxes or any QBSE related. Just leave a comment below and I'll get back to you You have a good one.