Learn how to use the Tags column in the Categories sheet to better organize your financial data.
- Use your own unique Tags.
- Apply multiple tags to the same category when separate by a comma, but without a space (e.g. “Travel,Business”)
- Use “Business” to have the Tax Estimator pick up transactions with categories that have this tag.
- Use “Tax” to have the Category Rollup pick up transactions for reporting on itemized deductions.
Tag Your Business Expense Categories
Use the “Business” tag for categories that correspond to business expenses and business income. Any transactions that are assigned to these categories will be pulled into the Quarterly Tax Estimator sheet and are used to calculate your net profit.
You should consult with your tax advisor or accountant about which business expenses should be included for reducing your net profit (i.e. tagged as business) that you’re required to pay tax on, but here are some basic guidelines.
- Business meals are not always counted at 100%. If you tag a business meals and entertainment related category as “Business” be sure to use the manual adjustment area to reflect the actual amount that can be used from this category to reduce your taxable income.
- If you have personal transactions in the same sheet, make sure you’re only applying the “Business” tag to business related expense categories. You may need a separate category to better organize business and personal transactions or use the manual adjustment areas to provide accurate expense data for those categories.
Tag Your Tax Deductible Categories
You can tag a category as “Tax,” and it will be available for itemized tax deduction reporting using the Category Rollup report available in the Tiller add-on.
The Category Rollup report gives you the option to show only transaction details for categories tagged as “Tax” as well as other report configuration options.
You should consult with your tax advisor or accountant about which types of expenses can be itemized before applying the “Tax” tag to your categories. In general if you take the standard deduction, you don’t need to itemize.
If you are going to itemize deductions, and you’re use the quarterly tax estimator sheet, categories that are tagged as “Business” should not also be tagged as “Tax” as this would be double counting the tax reduction benefit.