Learn how to electronically pay and file your sales tax liability through QuickBooks Online.
If you have set up and use Automated Sales Tax, you can now electronically pay and file sales tax liability and returns directly through QuickBooks. Here's a quick guide to this feature.
When you select View next to a sales tax return, you will be asked how you would like to file your sales tax. You’ll have the option to select either Quick e-file set up or I’ll do it on my own.
Once the first agency has been set up, e-file for other agencies can be set up by accessing the Sales tax settings in the Sales tax center. In these cases, no banking information is required but specific to that agency like Tax ID, Sign in credentials.
Once e-file setup is complete, returns will be available to review and submit. Selecting View brings up the Return Summary. This breaks down all sales and liability amounts, adjustments that have been made (such as pre-payments, prior payments, or agency credits) and will include the QuickBooks Filing Fee.
If you prefer to manually file this return with the tax agency, you can toggle off e-file to the right of the Return Summary. All sales tax returns and payments that are listed as Due must be submitted on or before the 15th day of the month to ensure timely filing with the agency.
If e-file is not selected, select Record payment to continue. Note: The payment is simply being recorded in your books. You’ll be responsible for manually filing the return and submitting the payment directly to the tax agency.
Once the return has been e-filed, it will appear in the In Progress section of the sales tax center. The return will remain in the In progress section until the payment and return have been successfully transmitted to the tax agency. If there is an issue with the return or payment, you will see the status updated here as well.
Current processing timelines are as follows:
|1st to 19th day of the month||Customer initiates e-filing|
|2 days after return initiated
||The return will typically be filed|
|3-5 days after returns are accepted by the agency||Funds are debited from the customer's bank account. QuickBooks Online status is updated to filed and paid once the payment has been successfully debited.|
You can review all of your submitted returns and payments in the History section of sales tax center. Select View return to get the e-file confirmation information.
With the Automated Sales Tax feature, you can override the amount of sales tax collected on transactions if you don’t agree with the recommended amount. However, if any overrides to the sales tax amounts have been made, electronic filing via QuickBooks will not be available for the tax return.
If amounts have been overridden, but you’d still like to e-file through QuickBooks, you can do so by choosing to use the recommended calculation amount. Choosing this option will automatically create an adjustment for you. This will adjust the tax liability in QuickBooks Online to match the payment amount. This is important to keep your books balanced for the period.
When reviewing the status of the sales tax return in the tax center, you may see an error regarding the bank account/payment. Select the link available to determine the next steps needed. Reach out to our support team if you need further assistance.
If a sales tax return is rejected, we’ll send you an email regarding the rejection and the sales tax center will be updated to show an error with the return. Contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.
Is there a fee for filing my tax return electronically through QuickBooks?
Yes, a filing fee will be charged for each sales tax return submitted.
If I complete the E-file set up, do I have to e-file my returns for each filing period going forward?
No, you'll be able to select whether you want to e-file through QuickBooks or file directly with the tax agency each time a tax return is due.
Why don't I have the option to enroll in e-file for sales tax?
This feature is not currently available to all QuickBooks Online customers. In order to be eligible for this feature, all transactions for the filing period must be created while using the Automated Sales Tax feature and the filing frequency listed and tax period for your tax agency must be correct in QuickBooks. Additionally, QuickBooks currently only supports e-file ability for approximately 30 state sales tax agencies. We are working to expand this feature across all 50 states. Select the link below to see the list of agencies currently supported:
|AR||Arkansas Department of Finance and Administration|
|CA||California State Board of Equalization||Currently available for customers who do not require prepayments or have multiple locations|
|CT||Connecticut Department of Revenue Services|
|FL||Florida Department of Revenue|
|GA||Georgia Department of Revenue|
|IA||Iowa Department of Revenue||Currently available for customers who do not require prepayments or have multiple locations|
|ID||Idaho State Tax Commission|
|IN||Indiana Department of Revenue|
|KY||Kentucky Department of Revenue|
|MA||Massachusetts Department of Revenue|
|MI||Michigan Department of Treasury|
|MN||Minnesota Department of Revenue|
|NC||North Carolina Department of Revenue|
|ND||North Dakota Department of Revenue|
|NE||Nebraska Department of Revenue|
|NJ||New Jersey Department of Revenue||Currently available for customers who do not require prepayments or have multiple locations|
|NM||New Mexico Taxation and Revenue Department|
|NV||Nevada Department of Taxation|
|NY||New York Department of Taxation and Finance||Currently available for customers who do not require prepayments or have multiple locations|
|OH||Ohio Department of Revenue|
|OK||Oklahoma Department of Revenue|
|PA||Pennsylvania Department of Revenue|
|SC||South Carolina Department of Revenue|
|SD||South Dakota Department of Revenue|
|TN||Tennessee Department of Revenue|
|TX||Texas State Comptroller||Currently available for customers who do not require prepayments or have multiple locations|
|VA||Virginia Department of Taxation|
|VT||Vermont Department of Taxes|
|WI||Wisconsin Department of Revenue|
|WV||West Virginia Department of Revenue|
|WY||Wyoming Department of Revenue|
How long do I have to e-file?
Tax returns and payments must be e-filed within QuickBooks between the 1st and 18th day of the month to ensure they are filed timely with the tax agency. Customers will be responsible for manually filing any returns that are not submitted within this time frame.
Why can’t I e-file my return if I’ve overridden my sales tax amounts on transactions?
When you file your return electronically, through QuickBooks, the accuracy of your sales tax liability and return filed are guaranteed.
If you’ve performed any overrides but would still like to e-file this return, the recommended amounts must be accepted when filing. QuickBooks will automatically create a Tax Adjustment transaction to balance your books in this scenario.
I received a notification that my account is on hold and I can’t e-file my tax return. How can I remove the hold?
The account will be placed on hold if we are unable to successfully debit your account for sales tax liability and/or QuickBooks Filing fee. This hold will be lifted automatically once the QuickBooks team is able to successfully debit your account. If we are unable to re-debit the account, please contact our customer support team at 800-317-6244 or for some complicated issues we offer a callback for further assistance.
How can I tell which bank account was used for my sales tax payments?
To see the last 4 digits of the bank account used for your electronic sales tax payments, click on View Return next to any given tax return/period. On the tax return summary screen, you will find all associated tax payments. Clicking on the payments will provide you with the bank account information for the given payment. This can be done for any completed or In Progress payments.
How do I update the bank account used for electronic sales tax payments?
Note: At this time, changing your sales tax bank account will also change your payroll bank account. The bank account will need to be verified before any new direct deposit and/or payroll tax payments can be processed.
I submitted my return, when will the funds be debited from my account?
Once the return has been processed, the amounts will be debited from your account within 3-5 business days after return is accepted by the agency. Completed tax payments can be found in the History Tab of the sales tax center by viewing the corresponding tax return.
Can I get a copy of my return/receipt once it’s been filed?
At this time, QuickBooks will not provide a copy of the tax return, but we are looking into the ability to support this in the future. Payment receipt will be available under the History tab once the return is filed and paid.
I clicked the E-file return button, but just realized that I forgot to include some invoices? Can I cancel and still file in time?
At this time, once the E-file return option has been selected, you cannot cancel this return from processing. If any transactions are added or removed after submitting your return for the given period, the amounts will be carried forward into the next return for this tax agency.
Can I submit the payment directly to the agency, but still have QuickBooks file the return?
The payment and filing must be submitted together within QuickBooks. If you’d like to handle these separately, it would be best to simply record payment in QuickBooks and file outside.
Can I file a past due return?
Only returns that are currently due will be available for E-file within QuickBooks.
I received a notification that my return was rejected. How can I re-submit it?
At this time, once the E-file return option has been rejected, you cannot resubmit this return for processing. Simply record payment in QuickBooks and manually file return to the agency.