Using Catch.co for Tax Withholding — How do I categorize?

jakellc

Hi all,
Bit of a Wave newbie here... I'm self-employed and trying to figure out how to record the money I'm setting aside for income tax.

Catch.co actually withdraws a certain percentage for each transaction that I mark as income (inside their app).

But I'm not sure how to categorize those outgoing transactions in Wave?

I'll be paying my quarterly estimated taxes directly from Catch.

Mikeg

@jakellc,
You would create a short term asset and categorize there. When you make a payment, you would do the following journal entry to reduce the Catch account.
Debit Owner draw
Credit Catch account
Taxes are not a deduction for sole prop.
The other option would be categorize to owner draw.