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sarahyohn
October 2, 2021
Question

Should I be entering my W2 income into self employed quickbooks? I am beginning to wonder since its basing my taxes due off all income however W2 income was already taxed. Please help. Thank you!

  • October 2, 2021
  • 1 reply
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1 reply

R
RCV
October 2, 2021

Thank you for choosing QuickBooks Self-Employed (QBSE) as your accounting software, sarahyohn,

 

When it comes to entering your W-2 income in QBSE, it would be best to confirm this one with your accountant to help and guide with this. Your accountant can provide more expert advice in dealing with this concern. QuickBooks Self-Employed also considers your tax situation. When you fill out your tax profile, you tell QuickBooks about your 1099-MISC and W-2 income. This puts you in a tax bracket, which is part of how QuickBooks calculates your federal estimated quarterly tax payments. 

 

Just in case you need to enter them, we can tag those transactions as Personal income. Then, record the actual income in the Tax Profile section. This helps identify your tax bracket and will show up under the W-2 Annual Income box. Here are the steps: 

  1. Click the Gear icon located in the upper right corner.
  2. Under Taxes, choose Tax Profile.
  3. On the Tax Profile page, enter the net pay in the Your annual W2 Income box.
  4. Press Save. 

  

I'm leaving you some articles to help guide you in filing 1099 and W-2 in QuickBooks Self-Employed:

 

I want to make sure everything is taken care of for you, just let me know how it goes or if you have any other issues or concerns. Just leave a comment below and I'll get back to you. Have a great day. 

S
sarahyohnAuthor
October 3, 2021

Thank you so much for the thorough reply. One other question. If I mark transactions as “Personal” do these transactions not get marked as taxable items? If this is the case then I can just be sure to mark all W2 income as personal income. I did notice when I did this it adjusted the approximate taxes due.

 

 

J
JonpriL
October 3, 2021

You're on the right track, @sarahyohn!

 

In QuickBooks Self-Employed, transactions that have been marked or categorized as part of your personal income or expense are not included in the calculation of your estimated taxes.

 

I'm adding this article to learn more about categorizing your transactions: Categorize Transactions in QuickBooks Self-Employed.

 

You may also read through this reference to understand more about the category used when marking and reviewing your transactions: Schedule C and Expense Categories in QuickBooks Self-Employed.

 

If there's anything else that I can help you with aside from this banking transactions concern, please let me know in the comments below. Stay safe and I wish you continued success!

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