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J
JHTP
July 31, 2025
Question

Self Employed but have some W2 income, how do I enter this correctly into QBSE?

  • July 31, 2025
  • 1 reply
  • 9 views

I use QBSE, and I mostly get paid via 1099 without taxes withheld. I have a new client that will only pay through payroll, so W2 and taxes withheld. 

Do I:

1) enter this information into my "tax profile"? So, I would enter the full amount of W2 income, then enter the federal and state taxes withheld, in their appropriate fields? I am married and filing jointly with 1 dependent. Or,

2) enter this information into my transactions. So, I enter the actual full income before taxes. Then enter an expense for the taxes withheld, and categorize it as federal tax/state tax? 

I've tried #2, and it will change what I should pay for my "estimated tax". This doesn't seem right to me. 

Is it better to do #1?

Thanks,

J

1 reply

A
ArielIQuickBooks Team
QuickBooks Team
July 31, 2025

You should definitely follow option number one, @JHTP. Enter your full W-2 income amounts along with the federal and state taxes withheld directly into your Tax Profile in QuickBooks Self-Employed (QBSE). This is the correct way because QBSE uses the information in your Tax Profile to accurately calculate your estimated taxes and tax liabilities.

 

Since your new client is paying you via payroll (W-2), make sure that your paychecks from this client appear correctly as transactions in your QBSE dashboard and that they are properly categorized. This will help ensure that your Profit & Loss statement and Tax Summary report reflect the true income and withholding amounts.

 

Also, verify that your Tax Profile is correctly set up, including your filing status as married filing jointly with one dependent, and that all withholding amounts are entered properly. Since the tax calculations and estimated tax payments QBSE generates rely heavily on this information, accuracy is key to avoiding discrepancies.

 

You can also click the Reply button if you have further questions. We'll be right here to help you anytime.

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