jclevengerjr
Level 1

VAT

Hi Raj,

So, I have set up 2 Tax Liability Accounts Called "State Tax Payable" and "Federal Tax Payable".

 

I have a 2 "Other Expenses" account called "State Income Tax" and "Federal Income Tax"

 

I'm struggling with how to create my liability and then pay my taxes with an offsetting transaction in my liabilities account as it is paid. 

 

How do I do this in the easiest manner?