Thanks for the reply!
I'm completely new to being self-employed and quickbooks so forgive me if I'm not asking questions in the correct way.
When something is tagged to a class, will it show up as an expense? From what the previous poster mentioned, out-of-pocket health insurance is not considered an expense but an itemized deduction.
There's no need to say sorry here in the Community, @dmccth.
I'd agree with Rustler that health insurance is an itemized deduction. Let me give you insights about the two primary types of deductions available in the United States under tax law.
Standard deduction - is a flat amount that you can deduct from your tax bill. The amount of this deduction varies based on your filing status.
Itemized deductions- allow you to deduct medical taxes, taxes paid, home mortgage interest, and charitable gifts. Itemizing means deducting each deductible expense you incurred during the tax year.
For more information on this, you may check out this article: The ultimate guide to tax deductions for the self-employed.
For class tracking, it's only available in QuickBooks Online Plus and Advance. Also, class tracking is different in categorization. For more information, you may take the time to read the article provided by my colleague Maryann.
In recording the itemized deduction, I'd suggest consulting your accountant for further assistance with the whole process and on how should this be handled.
Please browse through these articles for your future reference. This link contains a lot of information about managing your tax deductions in QBO.
Let me know if you have any questions. I'm always here to help. Take care!
