Assigning tax lines to new accounts

Follow these instructions when you add a new account to your chart of accounts.

If you chose one of QuickBooks' preset charts of accounts during the New Company Setup Assistant and if you file Form 990, 990PF, or 990T, follow these instructions for each account. QuickBooks does not provide tax line assignments for a preset chart of accounts when you choose Form 990, 990PF, or 990T as your tax form.

To assign tax lines to new accounts:

  1. In your chart of accounts, select the account.
  2. Choose Edit from the Action pop-up menu ( image).
  3. Choose the tax line from the Tax Line list:
    • If the account is not tax-related, choose <Not tax-related>.
    • If the account is a balance sheet account AND IF you file Form 1040, find out from your accountant if it's appropriate to assign a tax line to the account. When you file Form 1040, a balance sheet account may not report the correct total at the end of the year. If you file a business tax form such as 1120, 1120S, or 1065, you can assign Schedule L tax lines to balance sheet accounts.