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May 4, 2025
Question

How to mark transactions that are from a credit card and are an expense, not an income

  • May 4, 2025
  • 1 reply
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I’m stuck. I want to sort my transactions so that I can send them to my accountant at the end of the year. But what should I do with credit card transactions that are essentially expenses, but since it’s a credit card, QuickBooks treats them as income (highlighted in green)? Please help!

1 reply

MariaSoledadG
May 4, 2025

Bank transactions highlighted in green indicate credit card payments and which are recognized as a liability payment that reduces your outstanding credit card balance. They are categorized or marked as income because they offset your liabilities, not because they are actual income. I'll provide some details on this, Mural.

 

These credit card payments are not considered a direct business expense, but rather the repayment of funds that were borrowed to cover business expense. 

 

You'll want to review or double-check the transaction to ensure whether it should be categorized as an expense or income. To categorize a transaction, you can either choose the type of transaction by clicking it as Business, Personal, or Split. I've added a screenshot for your reference:
 

 

Next, click the Category and Tags column to choose an account.

 

 

 

To put your transactions in the correct line of your Schedule C, go through this article: Categorize Transactions in QuickBooks Self-Employed.

 

In addition, learn what federal self-employment taxes are and how QuickBooks Self-Employed automatically helps you estimate your federal tax payments. I've got this for you: Automatically Estimate Your Income Tax in QuickBooks Self-Employed.

 

If you have any questions or need further assistance about your bank transactions and how it is categorized, let us know. The Community team is always readily here to help you.