HOW TO MARK A LONG TERM LIABILITY AS PAID

Hello there, Operations2.

I've got the steps on how you can record the paid liabilities. There are two ways on how to achieve this task. You can enter the payment in the Pay Scheduled Liabilities page or through the Enter Prior Payments section. 

Here's how to do the latter:

1. Click the Help menu.
2. Select About QuickBooks.
3. On your keyboard, press Ctrl + Alt + Y.
4. Choose the date range.
5. Click Next until you see the Create Payments button.
6. Hit the drop-down arrow beside Item Name.
7. Choose the item you need to create a prior payment.
8. Verify the date.
9. Click Done.

If the liabilities were paid through Write Checks or Bill Payment, you can browse this page for the detailed steps: Record liabilities.

I've also added this article as additional guide in managing taxes: 

•  E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll Enhanced
•  E-file and e-pay state forms and taxes in QuickBooks Desktop Payroll Enhanced
•  Pay and file your payroll taxes and forms manually in QuickBooks Desktop Payroll

I'm just around whenever you have concerns about taxes. I'll be around to help.

@Operations22 

When the loan was paid off in 2020, were any/all of the payments recorded in QB?  If so, and your bank account has been reconciled (the payments have cleared), you will need to look at those payments/bills and see what account they were posted to.  They should have been recorded with a split between principal and interest.  Since you still show a principal balance on your balance sheet, obviously those payments weren't assigned the principal portion correctly and, because of that, there must be another account that it was recorded to that offsets the principal balance on your balance sheet that needs to be reversed.  I can assist further if you can provide those details.