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?
Associating a tax line with each account lets you:
Import tax data into our TurboTax or ProSeries tax products.
Create tax reports in QuickBooks that help you prepare tax forms. The
reports show the amounts to fill in for each tax line on the tax forms.
Choose the tax line on which you would report the income or expenses tracked
by this account. For example, if the account tracks your automobile expenses,
you would choose "Schedule C: Car and truck expenses." If you are not
sure which tax line to choose for this account, check with your accountant.
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?
During the Easy Step Interview, if you selected Other / None on the How is your company organized screen, the
Tax Line drop-down list will not appear when you add a new account (or edit an existing one).
Go to the Company menu and then click Company Information.
In the Report Information section of the window, click the Income Tax Form Used drop-down list and choose the income tax form that is used by your company.
A Tax Line drop-down list of forms and schedules will now be available when you're
adding or editing accounts. The Tax Line drop-down list will appear for all new accounts you add, but
will not automatically be added to existing accounts. However, you can easily edit your existing accounts
to manually assign tax form lines to them.
Tables showing general tax line categories for several business types
Tables showing general tax line categories for several business types.
Trade or business income and expenses
Rental income and expenses
Farm income and expenses
Farm Rental income and expenses
Other income; Estimated taxes paid; IRA/SIMPLE contributions;
Interest and dividends earned on business accounts
Distributions from partnerships
Trade or business income
Trade or business expenses
Cost of goods sold
Distribution of profits to shareholders
Balance Sheet Assets
Balance Sheet Liabilities
Accounts used to reconcile the company's books and the tax
S-Corporations and Partnerships
Sch K: Portfolio Inc
Items that are separately reported to each partner or
shareholder. These items are not included in the trade or
Fm 8825 A-D
Rental Real Estate property income and expenses
end of year income taxes
Should I use tax line mapping?