Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
July 11, 2020
Question

Why do estimated taxes appear as business losses?

  • July 11, 2020
  • 1 reply
  • 1 view

My estimated taxes appear to get counted as Business losses... so my net profit, and thus my total taxes due, looks lower than it really is.

What is the purpose of this? And should you not load estimated tax payments? If you do this, how do you inform QB of how much you've already paid?

1 reply

Level 2
September 22, 2020

Hoping my answers show here below your questions in blue italics. Assume you found answer .

 


@therealhelgatheviking wrote:

My estimated taxes appear to get counted as Business losses... so my net profit, and thus my total taxes due, looks lower than it really is.

When you pay estimated tax, you are paying expense in advance and expense reduces net profit.


What is the purpose of this? And should you not load estimated tax payments?

All accounting transactions should be recorded following the business activity, ie, payment made.

 

If you do this, how do you inform QB of how much you've already paid?

Account s/b clearly named as estimated taxes so you can show as prepaid when you file tax return.