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Increase the balance of the income tax liability accounts

Using the register for each liability subaccount, increase the account balance by the amount of the estimated taxes.

To do this task

  1. Go to the Lists menu and click Chart of Accounts. Shortcut

  2. Select the subaccount you want to update—either Federal Income Tax or State Income Tax.

  3. From the Edit menu, choose Use Register.

  4. 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 quarter."

  5. Record the transaction.

The subaccounts now reflect the amount of money you owe for estimated taxes.

For example:

Income Tax Payable

Other Current Liability

 

Federal Income Tax

Other Current Liability

2490.00

State Income Tax

Other Current Liability

677.00

KB ID# H_ESTIMATE_INCOMETAX_UPDATE
12/5/2016 6:34:29 AM
QYPPRDQBKSWS03 9138 Pro 2017 8e5f1f