It doesn't matter if I made $10.00 and paid $1.00 in income tax, the Turbo Tax balance sheet would still be off because it is not reducing the net income by the $1.00 before it adds the net income to the retained earnings. Since Turbo Tax calculates the income tax it should automatically reduce the net income by the amount of tax paid. Then the excess amount of taxes deposited should be put into an asset account of prepaid taxes for next year. Sure I can do a [Ctrl + D] and do an override to net income, but why should I have to do that?
