Have you ever noticed that the tax due amount on your tax cards sometimes differs from the amount shown on the tax forms? Well, don't worry; there's a good reason for that!
The discrepancy arises due to several factors. First of all, the tax due amount on your tax card can change when you update entries in the cash flow, compensation, or withheld tabs. These updates trigger automatic recalculations, leading to a different tax due amount.
But that's not all. Another factor that can influence the tax due amount on your tax cards is the filing of your tax returns for different quarters. For instance, if you've already filed your Q1 tax return and later proceed to file your Q3 tax return before your Q2 filing, this can lead to a negative tax due amount on your Q3 tax card.
To clarify, once you start filing for your Q1 tax return in Taxumo, the succeeding quarterly tax cards will auto-compute values based on the previous quarters. Hence, the negative tax due amount you see in the Q3 tax card is the Tax Payment from the Previous Quarter/s based on the Q1 tax due amount. However, it's essential to understand that this is not the final tax due amount for the quarter. The value will likely change depending on the Q2 filing and any additional entries you create for Q3.
Moreover, the final tax due amount you see in the preview page or on the tax form might still differ from what's on the tax card. The reason behind this lies in the additional line items on the pre-submission pages. These line items might require manual input of values, which can further influence the calculation of the tax due amount and cause it to vary from the one initially shown on your tax card.
So, while it might seem puzzling at first, the differences in the tax due amounts are merely the result of these calculations and adjustments in various parts of the tax process. By ensuring all the necessary details are correctly input, you can get a clearer and more accurate picture of your tax dues.