Using the register for each liability subaccount, increase the account
balance by the amount of the estimated taxes.
To do this task
Go to the Lists menu and click Chart of Accounts.
Select the subaccount you want to update—either Federal Income Tax or
State Income Tax.
From the Edit menu, choose Use Register.
Enter a new transaction to increase the liability, as follows:
Ref: Enter the number of the transaction.
Payee: Choose the vendor to whom you will write the check
for the estimated taxes. Typically, this will be the IRS or your state tax
agency. If you deposit the money in an account, the vendor is the bank.
Increase: Enter the amount of the estimated tax.
Account: Choose the appropriate expense account, either for
federal or state taxes.
Memo: Enter a memo that will help you remember the period
for which you entered the liability; for example, "1st
Record the transaction.
The subaccounts now reflect the amount of money you owe for estimated
Income Tax Payable
Other Current Liability
Federal Income Tax
State Income Tax