Discrepancy between products

[tayloredurogyn]

Why is there such a huge discrepancy between Intuit Self Employed Quickbooks in terms of quarterly tax calculations and what actual 2023 Tax law is?

I use Intuit Self Employed Quickbooks, had a CPA review my books and there was a >$25,000 discrepancy in what I owed in federal quarterly taxes.

One issue is the software still uses the 2022 100% meal coverage law.

What will Intuit due to reconcile these discrepancies?

Had I not had a CPA review my books I would have had sticker shock in April 2024.

[LEG_EA]

Hi @tayloredurogyn we see each other again!

There's a couple factors that need to be considered and may affect the outcome.  

• Bookkeeping for taxes and bookkeeping for financial/accounting reporting sometimes differs. 
• Did the CPA made adjustments to your books while reviewing them?
• Your previous post says that you were considering an entity change, how is it setup in QBs?  Is it setup for LLC single member or for S-Corp?

Also I would like to understand, what caused the discrepancy?  What changed?

I'm an Enrolled Agent, but I'm an Accountant/Bookkeeper as well.  I do know that for meals (bookkeeping wise) there's no adjustment for the 50% allowable.  

I suggest that you may want to contact Quickbooks if you still feel that the calculations are off.  Also I would suggest to have the CPA to set up your accounts (or review them) to make sure that they are using the right settings.

Here's an article I found from QBs:  Automatically estimate your income tax in QuickBooks Self-Employed 

Feel free to post any additional questions you may have.

[rschule1]

Hi there:

I believe Quickbooks quarterly calculation to accurate. However it is dependent on accurate bookkeeping entries, which includes designating meals as 100%, 50% or 0% deductible. Customer service at Quickbooks will be able to guide you through proper setup.