Best way to track tax liability?

[heather]

If not, I would recommend just paying close attention to the balance of the account that you plan to pay the tax out of to ensure it never dips below X amount with X being the estimated amount you need to pay in taxes.

Here’s another thread on estimated tax liability categorization you want to review or chime in on

How to categorize Estimated Quarterly Tax Payments?

Hi @hbwilliams22, Here’s some thoughts on your question. I’m not a tax accountant, but I’ve had the same issue. The simple way would be to create 1 Estimated Tax Payment expense category. Or you could create two, one for Federal Tax Payments one for State Tax Payments. Since these expenses require cost outlays like food and gas, you probably want to budget for them and include them in your reports. But, these estimated tax payments are not like ordinary expenses in some ways. You owe a certai…