What category should I choose for charitable donations?

Hi Catherine,

QBSE has a general income category that is used for the positive transactions or money coming into your account. QuickBooks includes business-related income when calculating your estimated taxes. Transactions that are not part of your self-employed business, can be marked as Personal so they won't be included in the tax calculations.

Since you want charitable donations to show as non-taxable, I recommend consulting your accountant or tax professional. They can help you confirm whether the transactions can be tag as personal income and provide additional advice that's tailored to your business structure.

You can follow these steps to start categorising it:

1. Go to the Transactions menu and locate the charitable donation entry.
2. Select Business or Personal, depending on your accountant's advise.
3. Review the category in the Category column, and when you're done, select Save.

Feel free to reply if you have additional questions about managing financial transactions. We're available 24/7 to assist you.