Question

How do I label Non-Taxable income so that it shows as income but doesn't register when filing my taxes?

Forum|Forum|4 years ago
September 26, 2021
3 replies
18 views

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QuickBooks Self-Employed

Level 9

Welcome to the Community, @nopa594750.

QuickBooks Self-Employed only tracks your self-employment business income, expenses, mileage, and tax info. Any non-taxable items shall be marked as Personal.

The following items are deemed nontaxable by the IRS:

Inheritances, gifts, and bequests
Cash rebates on items you purchase from a retailer, manufacturer, or dealer
Alimony payments (for divorce decrees finalized after 2018)
Child support payments
Most healthcare benefits
Money that is reimbursed from qualifying adoptions
Welfare payments

You can check out this link to learn more about categorizing transactions in QBSE.

Additionally, I've got you some of our helpful articles that you can use in the future to help you learn more about how QuickBooks Self-Employed works:

Feel free to message by adding your comment below if you have additional concerns. I'm always around to answer them all.

J

jennkehoervt-gma

Question:

In 2021 I invoiced via Square & catagorized the deposits as income but within that deposit were the per diem amounts charged. I recently learned that per diem is non-taxable, I'm an independent contractor & invoice for services provided and the per diem for travel based on gsa.gov. For 2022, should I "split" the income & how would I categorize it?

Thank you

C

Candice14

Level 8

Good morning, @jennkehoervt-gma.

Thanks for joining in on this thread. I hope your day is going well so far. I can help point you in the right direction to get this resolved.

To be sure of this information, I suggest consulting with your accountant. They'll be able to give you the best advice for your business.

I'm only a comment away if you have any other questions or concerns. Have a great day!

M

MarkRS

I'm so sorry, but these answers are not helpful. The question is simple. In QuickBooks Professional Desktop, How do I book social security retirement income which is not taxable in most cases? It's income, but it's non-taxable, or at least needs to be segregated so my CPA can identify it and deal with it. I don't want it showing up as regular income. It's so frustrating to read people phrasing the question clearly but getting answers off the wall. The QBx income account doesn't offer a non-taxable sub-account.

Z

ZackE_

Moderator

Welcome to the Community, MarkRS.

You can enter social security retirement income by creating the appropriate transaction type (deposit, check, etc.).

Here's how to create deposits:

From your homepage, go to Record Deposits / Make Deposits.
In the Payments to Deposit window, choose which payments you want to combine, then click OK.
On your Make Deposits screen, pick which account you want to put the deposit into from your Deposit to drop-down list.
Check the deposit total and confirm your account and selected payments match the slip from your bank.
Enter the date you made your deposit.
Add a memo if necessary.
Select Save & Close.

If you need to enter it as a check, the steps are a bit different. In the event it needs to be entered as a different type of transaction, please get back with me here if you need assistance with creating it.

I'd also recommend working with an accounting professional while entering your income to make sure it's entered properly. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

I'll be here to help if there's any questions. Have an awesome day!

I

iceman101184

Easy. I have no idea why so many answers here were so verbose and unhelpful.

Just create a NEW income category of type "Other Income" and label it "Non-Taxable Income" - it can be a sub category of the "Other Income" bucket (but this is optional). Then use the classification "Non Taxable Interest Income" - which uses the appropriate tax form and is meant for this sort of thing.

Done.

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