What expense category are federal income taxes?
There are a few different ways to categorize federal income taxes, but the most common and accepted method is to list them under the "taxes and licenses" category. This makes sense because federal income taxes are a mandatory payment that businesses must make to the government, similar to other types of taxes and licenses.
Another way to categorize federal income taxes is under the "operating expenses" category. This is because federal income taxes are a necessary part of doing business and are often used to calculate the net income of a business. This method is less common, but it is still accepted by many businesses.
ultimately, it is up to the business owner or finance team to decide which expense category is best for federal income taxes. There are a few different options, but the most important thing is to be consistent with how you categorize them.