An account's tax line associates each income and expense account with the appropriate tax form and line on your company income tax return. You'll see tax lines for the tax form you choose and for schedules and other forms typically filed with that tax form. This makes preparing income taxes easier and quicker, because it enables you to create tax reports to assist your accountant or to export and import your tax data into ProSeries, TurboTax, TurboTax Business, or Lacerte tax programs.
What are the benefits of associating a tax line with each account?
Go to the Lists menu and click Chart of Accounts.
Select the account to which you want to add a tax line.
Click Account at the bottom of the list and then click Edit Account.
Click the Tax Line drop-down list and choose the appropriate tax line where this account should be recorded.
If a tax line already appears in the Tax Line field, QuickBooks has automatically preassigned the correct tax line for you. The type of tax form you chose in the Company Information window determines which tax lines appear in the Tax Line drop-down list. You'll see tax lines for the tax form you chose and for schedules and other forms typically filed with that tax form.
For example, if you are a sole proprietor of a business and you
file Schedule C: Profit and Loss From Business, this tax form has
lines such as:
Gross receipts or sales
Repairs and Maintenance
Other business expenses
If you have a main revenue or sales account, choose the
"Sch C: Gross receipts or sales" tax line. If you have an
account for repairs and maintenance, choose the tax line "Sch
C: Repairs and Maintenance." Expense accounts for which you
don't find an exact match can be assigned to the "Sch C:
Other Business Expenses" tax line.
If you are unsure which tax line to choose for an account, keep
in mind that the tax lines closely approximate categories that most
businesses would use. Examine the total list to find the closest
match available. If you are still not sure which tax line to choose
for an account, ask your accountant.
Note: To disassociate a tax line from an account, select Unassigned.
What if the Tax Line field isn't there?
Tables showing general tax line categories for several business types
end of year income taxes
Should I use tax line mapping?