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Vanessa_N_Brown
Level 1

Taxes "included" vs "excluded"? I create invoices outside of QB and keep taxes as a separate line item and therefore excluded. When the sale is imported into QB, it is for the total amount included taxes. Should I select my tax application as "included"?

 
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LauraAB
QuickBooks Team

Taxes "included" vs "excluded"? I create invoices outside of QB and keep taxes as a separate line item and therefore excluded. When the sale is imported into QB, it is for the total amount included taxes. Should I select my tax application as "included"?

Hello Vanessa_N_Brown,

 

Great question! Knowing whether to include or exclude taxes makes a big difference in how things are calculated and I can see how your situation might make things a bit confusing. I'll help you with seeing how it works in QuickBooks Self-Employed and let you know some resources if you still need a hand working out the details.

 

When you're entering details into the program that have a total with the sales tax already calculated, you'll want to choose the Included option. This ensures that the program isn't again calculating taxes on top of the number you're entering. If you want sales tax to be calculated in addition to the figure entered, then you'd choose Excluded. Check out this article to learn more about sales tax in QuickBooks Self-Employed: Sales tax overview

 

I know there are a number of reasons to calculate things one way over the other, and I want to make sure you have the best workflow for your business and your books. Checking in with an accountant or bookkeeper is the ideal course of action in these cases as they would each have the training to let you know how doing things will impact your books.

 

Let me know if you need a hand with anything else. Wishing you an awesome week!

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