Tax Credit

Hello there, @kskove.

Thank you for posting in the QuickBooks Community. I'd be happy to help share some information about how to enter the credit on the next quarter taxes.

If you're referring to a payroll tax refund, you have an option to apply this credit to the next quarterly taxes. If you've already paid the tax liability on the previous quarter, you need to enter first a prior tax payment so that it shows as an overpayment amount in QuickBooks.

When QuickBooks detects that you've overpaid your taxes, it'll give you the option to apply the overpayment to a future tax liability period.

Here's how to record the prior tax payment:

1. On the left pane, select Taxes.
2. Select Payroll Tax.
3. Under Taxes, click Enter prior tax history.
4. Click Add Payment.
5. Select tax type and liability period.
6. Enter the Payment Date, Check Number and Tax Item Amount.
7. Click OK.

After that, apply a liability overpayment as a credit to payroll tax liabilities.

Here's how:

1. On the left pane, select Taxes.
2. Select Payroll Tax.
3. Under Taxes, click Pay Taxes. 
4. In the Pay Taxes page, find the tax name under TAX TYPE.
5. An overpayment appears on that page as a negative amount.
6. Click Resolve Overpayment.
7. Select Apply to a future tax payment (recommended).
8. Click Mark as Resolved.

Take note that some state agencies don't approve of applying the overpayment to a future tax liability. I'd suggest you contact your state's tax agency for verification.

For more details, I've attached some articles for your reference:

• Record prior tax payments
• Resolve tax overpayments or underpayments

Feel free to drop a comment below if you have any other questions about applying a credit for the next quarter taxes. I'll be happy to help you further. Have a great day. 

Hi, 

When is the deadline to apply a Federal Tax Credit to my QB Online account? When will form 941 be made available?

I think this has to be done on a quarterly basis. Is there a deadline before the end of the quarter? (Would it need to be after the second Federal tax payment (usually the 25th of the month - so that the total amount paid to the Federal agency is completed before following the steps below) and before the 1st of the next month?)

I did see your post below but I wasn't sure if this applies to a Federal Tax Credit type as well.

"If you're referring to a payroll tax refund, you have an option to apply this credit to the next quarterly taxes. If you've already paid the tax liability on the previous quarter, you need to enter first a prior tax payment so that it shows as an overpayment amount in QuickBooks.

When QuickBooks detects that you've overpaid your taxes, it'll give you the option to apply the overpayment to a future tax liability period.

Here's how to record the prior tax payment:

1. On the left pane, select Taxes.
2. Select Payroll Tax.
3. Under Taxes, click Enter prior tax history.
4. Click Add Payment.
5. Select tax type and liability period.
6. Enter the Payment Date, Check Number and Tax Item Amount.
7. Click OK.

After that, apply a liability overpayment as a credit to payroll tax liabilities.

Here's how:

1. On the left pane, select Taxes.
2. Select Payroll Tax.
3. Under Taxes, click Pay Taxes. 
4. In the Pay Taxes page, find the tax name under TAX TYPE.
5. An overpayment appears on that page as a negative amount.
6. Click Resolve Overpayment.
7. Select Apply to a future tax payment (recommended).
8. Click Mark as Resolved."