Estimated tax amount does not seem to reduce in correspondence with the mileage deduction amount. Is this a glitch in the system?

Answer

Hello there, blessedlife7,

I'd like to make sure you have accurate record of your mileage deduction.

One possible reason why the estimated tax is not reducing the mileage deduction, is choosing the incorrect tax year. Let's make sure to highlight the correct tax year.

Here's how:

  1. Go to Taxes.
  2. Choose Annual taxes.
  3. Select the correct tax year at the top.

On the other hand, please take note that the mileage deduction will not be included on your quarterly estimated taxes. This is because it's an annual type of deduction which you need to itemize when filing your annual tax return.

You'll need to make sure you record all Self-Employed business related transactions so everything will be calculated  when filing at the end of the year.

QuickBooks Self-Employed uses two methods in tracking your mileage expenses and deductions. For the purposes of tracking and estimating, we chose to only use the "standard method(total business mileage). So for QBSE purposes, we are always using the standard method. At annual tax time, you can still choose the actual method (actual expenses)

For further information, you can refer to these articles:

Please let me know if you have follow up questions about estimated taxes and mileage deductions in QuickBooks Self-Employed. I'm just around if you need help.

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IntuitRea , Community Support Specialist
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