File Your Tax Return and Record Tax Payments in QuickBooks Online

Whether it’s filing your tax return or recording tax payments, both tasks are crucial yet challenging at the same time. Filing your tax return on time ensures compliance with accurate financial information, and the same level of precision is required when recording tax payments.

If you are also wondering how to file your tax return and record tax payments in QuickBooks Online, this detailed guide has everything you need. Explore step-by-step instructions to prepare for filing your tax return, record tax payments correctly, and learn what to do when QuickBooks does not support tax return filing.

How to Record Tax Payments and File Your Tax Return in QuickBooks Online? 

Recording tax payments and filing your tax return in QuickBooks Online (QBO) involves two related but separate tasks, which are discussed below. 

Prerequisites

To get started with tax filing, make sure you’re tracking your taxes in QuickBooks Online. 

Learn how to manage your tax payments in QuickBooks Online: 

a. Record a tax payment

Follow this link to complete the steps in the product.

• Go to the Returns tab. 
• Find the tax return that you wish to record a payment for from the list of returns.
• Choose Record Payment from the Action column.
• Enter the required information in the fields (bank account you’re making the payment from, payment date and amount).
• When done, click Save. 
• Now, view the payment: 
• Go to the Payments tab, find it in the list, then click View.

b. Adjust a tax payment

If required, you can make the required adjustments when filing your taxes.  

• Go to the Returns tab. 
• Choose Prepare return.
• Enter the date from the End date and Filing date drop-downs.
• Select Adjust on the Prepare tax return page.
• Now, choose your tax account from the Adjustment account drop-down.
• Enter the tax amount from the Adjustment amount field.
• Click Save.
• Choose Mark as filed.

Use this to adjust the amount of tax paid, whether increasing or decreasing it, for items such as credits, discounts, fines, interest, penalties, or rounding corrections.

Note: Filing or managing taxes can be complicated. For any queries, contact QuickBookSupportNet at +1(866)500-0076 or the tax agency.

c. Delete a tax payment

Follow this link to complete the steps in the product.

• Select the Payments tab.
• Select Delete from the Action column, then select Yes to confirm.

Note: After you delete a payment, the page doesn’t refresh automatically.

Leave and come back to the Taxes menu. The payment shouldn’t appear anymore.

1. Review what you owe

Review everything to make sure it’s accurate before filing your tax return. 

Follow this link to complete the steps in the product.

• See which tax return is due this month. 
• Click on Prepare return. 
• From the Filling period dropdown, choose the appropriate option.
• Update the dates in the End date and Filing date fields accordingly. 
• If you need to make some adjustments for things like credits, discounts, or corrections, select Adjust for all items in the list that you want to make an adjustment for. Fill in the required details in the form, and click Save. The adjusted value will be saved automatically in the tax return. 
• Note down the gross sales, taxable sales, tax due, and adjustment amount (only if you added one). You will require the following numbers when you file your tax return form.
• Once done with updating the details, click Mark as filed.
• Finally, click Continue.

Note: If you want a clearer breakdown of your balance, generate your Tax Liability report for the same tax period. This can help when you review taxable and nontaxable invoices, receipts, and any other related transactions as needed.

2. File your return with the right tax agency

Once you review the tax, you will be left with the two options: file your own tax return, e-file your return on your tax agency’s website, or file by mail.

a. E-file your tax return

You can’t e-file right in QuickBooks. File directly with your tax agency online, and then enter your tax payment in QuickBooks to keep your tax info current.

• Go to your tax agency’s website to file your return online.
• If you haven’t yet, you might need to sign up for the state’s e-filing service.
• Fill out and complete your tax return form.
• Refer back to the gross sales, taxable sales, and tax due figures recorded in Step 1.

b. Mail your tax return

Most states prefer businesses to file electronically. If online filing isn’t an option, visit your tax agency’s website for instructions on submitting your return by mail.

c. Correct a tax return

QuickBooks Online doesn’t allow amended tax filings. If you need to make a correction, reach out directly to your tax agency.

3. Record your tax payment in QuickBooks

After filing your tax return, enter your payments in QuickBooks to clear the tax payable balance and keep your tax records up to date.

• Look for the tax return you just filed, then choose Record payment.
• Choose Payment under the Payment type.
• Add the following payment details: 
  • Bank account
  • Payment date
  • Payment amount
  • Memo (optional)
• Finally, click Save. 

You can find your payment details in the Payments tab.

Next steps

• If you submitted electronically: Visit your tax agency’s website to track the status of your return.
• If you mailed your return, Reach out to your tax agency directly for an update.

Conclusion 

Filing taxes on time and recording tax payments is crucial for legal compliance, avoiding penalties and other financial benefits. With this detailed guide, you will learn how to file your tax return and record tax payments in QuickBooks Online. 

We understand such processes can be a bit challenging, we recommend you consult a QuickBooks account or tax professional at +1(866)500-0076. Talk to an expert to consult on your issues now!

Frequently Asked Questions 

How to record tax payments in QuickBooks Online?

In QuickBooks Online, look for the tax return you just filed > Record payment. Select Payment under Payment type and enter the required payment details. When done, click Save, and the tax payment is recorded under the Payments tab. 

How to file a tax return in QuickBooks Online?

To file your taxes, first review you owe from the end date and Filing date, choose the right tax agency to file your taxes either online or via email. Once done, record the tax payment in QuickBooks to ensure compliance and accuracy. 

How to reconcile tax payments in QuickBooks Online?

To reconcile tax payments in QBO, go to Settings > Reconcile > choose the bank that you use to make sales tax payments from the Account drop-down. Note down the Statement Ending Date and Ending Balance. Click Start Reconciling > enter the details > choose the payment you’re reconciling and click Finish Now. 

Can you file a tax return with QuickBooks?

No, QuickBooks doesn’t support filing a tax return from the software,but prefer users to file a tax return directly through their state agency.