How do people categorize an IRS payment because I withheld too little?

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1

I know I can create additional categories and have, but the lack of a tax category makes me think there is a default strategy. I don’t account for tax withheld monthly, just taking the net paycheck amount from Tiller, but this year had to pay the IRS because I withheld too litt.

2

I track monthly deductions from gross pay (i.e., I have tax categories), so I can’t claim that the following is what I do. But if I was just tracking net income, I think I’d categorize a tax payment as a charge against net income. My logic is that another way of understanding the need to pay the IRS is that your net income was too high.

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3

A charge against income makes a lot of sense, dmetiller. I’ll take that route.

Thanks

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4

Personally, since it’s just a one time payment I use a “Misc - over $20” category and leave a note “taxes”

I try to keep my categories lean and don’t like creating one for rare transactions, but I lean pretty heavily on my notes column to describe a bit more about what’s going on behind my transactions

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5

Thanks, Morgan. I’ll consider this option, too.

Rick

6

I have a taxes category that i use for payments or refunds this way i can quickly compare year to year what has changed with how much i have paid out or how much has refunded.

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