Why is the Sales Tax Liability report incorrect? It is now adding my labor amts to the taxable amt when it should only be adding parts I selected as taxing on the invoice

Welcome to the Community, Schumachertracto.

We want to ensure we can provide a timely solution to your concern. Thus, I'd like to ask for more details to help you achieve your goal.Can you please provide us with additional information about how did you enter the labor amount or a screenshot of how it looks from your QuickBooks Online account? Any further details would be much appreciated for narrowing down this issue.

I'd appreciate any additional details that you can provide so I can help you out. I'll be keeping an eye out for your response to this.

This is how I enter my details into my Invoices.  As you can see the Parts line has tax applied with the check box.  Just starting in Feb the Sales Tax Liability report is not summing the Taxable Amount column correctly.  It is adding the labor amount into the figure.  It should only be the Parts line that I select tax on.  Also if an invoice has no tax selected (because some of my customer's are tax exempt), it still adds those lines amounts to the Taxable Amount column when it should not and in the past did not. 

Thanks for providing more details and bringing this matter to our attention, schumachertracto. We want to ensure this matter is addressed quickly so your tax report shows accurate data in QuickBooks Online (QBO) and records your sales transactions accordingly.

For the time being, we've received similar cases where the Taxable Amount column includes non-taxable line items on an invoice in the Sales Tax Liability report. In keeping with this, I'd recommend contacting our Customer Care team so they can gather more details and come up with a fix. To do this, here's how:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Select either tab to get started:

• Assistant: Get quick, personalized answers. Select a suggested option, or type a question or topic you need help with. If you decide you need further help, you can still Talk to a human.
• Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us: Start a chat with a support expert or Get a callback from the next available expert.

Once the issue is fixed, pull up the Sales Tax Liability report to see how much sales tax you owe.

Also, I've included this article to guide you in filing your sales tax return and record payment in QBO: Manage sales taxes in QuickBooks Online.

We appreciate your patience regarding this matter. Feel free to visit us anytime if you need further assistance managing sales tax transactions and returns in QBO. The Community team will always be around to help you out. Keep safe.

This happening with me too, putting non taxable services in the taxable section of the sales tax liability report

Thanks for joining the thread, @Htank910.

As the problem continues to persist, I would suggest getting in touch with our Phone Support team so you'll be added to the list of affected users. This way, you'll receive email notifications about any updates or once the investigation is resolved. You can follow the steps shared by Rea_M above on how to contact them. If you're unable to connect with them through your books, you can get in touch through our website. 

Make sure to review their support hours since they can only accommodate you Mondays to Fridays from 6 AM to 6 PM PT and Saturdays from 6 AM to 3 PM PT.

I'm adding these articles to learn more about managing sales tax in QuickBooks: 

• Check how much sales tax you owe in QuickBooks Online
• File your sales tax return and record sales tax payments in QuickBooks Online

 Drop a comment below if you have other questions about running sales tax reports in QuickBooks. We'll be around to lend a helping hand.

This is totally ridiculous. Non-taxable sales are showing 0 dollars now and I have a monthly tax filing due. Why are things randomly breaking? 

I understand the frustration this may have caused you, RayM. Allow me to share some updates about this.

As per checking, I've seen that there is an ongoing investigation (INV-100774) about the non-taxable items on invoices being calculated as taxable amounts. As of the moment, we don't have a specific time frame on when this will be resolved. However, I want to assure you that our engineers are working together to find a solution as soon as possible.

If you haven't contacted our support team yet, I suggest reaching out to them to add your name to the list of affected users, and they'll notify you of the updates via email.

Here's how:

1. Log in to your QBO company.
2. Select Help (?).
3. Click Contact Us and choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

Also, please check this article for you to be able to be guided and learn how to determine if your transaction or customer is exempt from sales tax, and how to set up a customer or product with a tax exemption in QBO:  Understand and set up sales tax-exemptions in QuickBooks Online.

Feel free to comment below if you have additional questions about managing sales tax reports to QuickBooks Online. I'm always around to help you out. Stay Safe.

This is happening to me as well. I just went through my long list of products and services and changed all of the service items back to non-taxable but that is not helping me get my sales tax paid by tomorrow. I know it's last minute but this whole process should only take me 15 minutes. The math on the Sales Tax Report isn't even correct. No matter what amount is showing in the Taxable Amount X 6% is giving the same answer. $5 X 6% does not equal the same thing as $10,000 X 6%. To avoid penalties am I supposed to just pay what I GUESS is correct??

Thank you for following up on this thread, staci77.

We recognize the importance of your time and effort in rectifying your sales tax information. Let me point you in the right direction to handle your concern.

As previously discussed by my peers, we have an ongoing investigation where non-taxable items on invoices are being calculated as taxable amounts. This has led to incorrect information shown in your Sales Tax Liability report.

 We advise all users who have been impacted to reach out to our QuickBooks Online (QBO) Care Team and subscribe to our notification list. This will ensure that you receive updates on the issue's progress, including details about permanent solutions.

Here's how:

1. In your company, tap the Help icon in the upper right to display the support window.
2. Choose the Assistant tab and enter a brief description of your concern in the Type something bar.
3. Press the Get help from a human link to see more options.
4. In the How would you like to connect with us? section, choose Chat to initiate a conversation and Callback to speak with an agent.
   
   

To learn about the best time to contact our support team for QuickBooks Online, click on the link provided: QuickBooks Online.

For your other concern, you'll have to manually calculate the sales tax amount and use the figure to pay your sales tax liability.

For additional resources, I've included an article that outlines the necessary steps to address your sales dues: Create or delete a sales tax adjustment in QuickBooks Online.

Moreover, you; 'll find helpful solutions within these articles to effectively handle tax-exempt customers, file your sales tax return, and gain insights into other sales-tax related topics. Simply browse through each link for detailed instructions:

• Understand and set up sales tax exemptions in QuickBooks Online
• Set up and use automated sales tax in QuickBooks Online
• Learn about sales and use tax in the US

I appreciate your patience while we're working through this. Don't hesitate to visit the Community again if you have other sales tax concerns or need further assistance navigating through QBO. I'll be glad to provide the assistance you need. Have a good one, staci77.

I am having the same issue.

Spent 35 minutes on the phone with QuickBooks support.  I was told issue will be "fixed" by 4/15/24.  It would be nice if QuickBooks would reply to to these posts/questions with information like this...would save a lot of time on both sides.

Hello there, AT009.

I appreciate your posting your concern here and sharing the steps you've taken in fixing your sales tax liability report in your QuickBooks Online. I am aware that you have already contacted our support team and discussed the timeline for the resolution. Rest assured that our Product Engineering Team will do everything to solve this issue as soon as possible.

In the meantime, if you have other inquiries regarding the sales tax liability report or any QBO-related questions, don't hesitate to ask here in the Community. We'll be of help in any way we can.

Thank you Irene.  I'm hoping QuickBooks will update community questions/posts so all QuickBooks users/customers may find useful information regarding a current issue.  Looking forward to a "fix" by 4/15/24.  Tax Day. 

If you don't want to wait for 4/15/24.  I found a solution with a lot of trial and error.  But this does work.

• Sign in to QuickBooks Online (if you haven't already).
• Go into all your invoices for Feb & Mar
• In the invoice, select See the math next to the sales tax amount.
• Reselect what you have as the tax option (make sure it is the same option). This will recalculate the numbers on your sales tax liability report.
• Select Close, and then Save the invoice.

If you do this to all your invoices in Feb and Mar it will correct the Sales Tax Liability report.

On behalf of my colleague, you're most welcome AT009. I appreciate your patience and understanding. 

I'll further share information regarding the sales tax issue. 

You'll receive an email notification containing updates about the progress of this issue and once it's resolved. Please be assured, that our Product Engineering Team is actively working to find a fix to this issue as quickly as possible.

Also, I'll add these helpful resources to help you manage your sales tax and invoices in QuickBooks: 

• Check how much sales tax you owe in QuickBooks Online
• Customize invoices, estimates, and sales receipts in QuickBooks Online
• Record invoice payments in QuickBooks Online

Meanwhile, if you have additional QuickBooks-related concerns, you can comment below. I'll get back to you as soon as I can. Take care!

Thank you Erika.  Thank you for the miscellaneous "helpful resources."  I'm all set with basic tasks like paying my state sales tax, customizing invoices and recording invoice payments in QuickBooks. 

In terms of the question at hand, I'll wait for a "fix," and in the meantime, do the math on my own regarding the Sales Tax Liability Report. 

I just found this thread because my March Sales Tax liability report was wrong for the first time today. Luckily we don't have many complex tax situations and I run a little spreadsheet to verify the proper amount of tax, but it was definitely off, and it didn't include one customer that was non-taxable, which threw off my gross total & non-taxable amounts. "transactions without tax lines".  Hopefully this will be resolved before April's taxes are due in May.

Thank you but this solution did not work for my report.

Did QBO gave you a response on how to fix this since we are now in May and they gave an April 15th deadline for them to fix it?

Hello Wrika,

Has QBO fixed the problem for the Taxable Amount column on the Tax Liability Report?

Mine is still wrong. I've resorted to calculating my own taxes which takes away very valuable time from trying to run my business and still paying QB stupid amounts of money. 

I hear your sentiments, everyone. Let me provide you with an update regarding the Sales tax Liability report.

The case under investigation has already been closed. The problem was supposed to be resolved by April 15. If you're still experiencing the same issue despite our previous resolutions, I recommend contacting our Technical Support Team again to reopen the investigation. Our software engineers are committed to resolving this. 

Additionally, I've included some resources for tracking and calculating sales tax:

• Set up where you collect sales tax in QuickBooks Online
• Set up and use automated sales tax in QuickBooks Online

If you require further assistance with sales tax tracking, tap the Reply button below or start a new post in the Community. I will promptly address your concerns. Have a good one.

This case should have been kept open- the issue hasn't been corrected. The sales tax liability report is totally useless. 

We appreciate the time and effort you've put into participating in the Community thread, RBKK.

Please know that we have resolved the issue with the Sales Tax Liability Reports, as mentioned by the previous representatives. To address your concern further, I recommend reaching out to our Customer Support Team for additional assistance with the next troubleshooting procedure.

To contact our Customer Support Team, please follow these steps:

1. Sign in to your QuickBooks Online company.
2. Select Help (?).
3. Choose either tab to get started:
   • Assistant: Get quick, personalized answers. Select a suggested option, or type a question or topic you need help with. If you decide you need further help, you can still Talk to a human.
   • Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us:
     • Start a chat with a support expert.
     • Get a callback from the next available expert.

The support hours for Plus, Essentials, and Simple Start are Monday to Friday, 6 AM to 6 PM, and Saturdays 6 AM to 3 PM, while for Advanced, support is available anytime, any day. Please refer to the outlined article, which includes the direct phone number for QuickBooks Online support.

Additionally, you can refer to this article for additional insights and information on the filing sales tax return process in QuickBooks Online: Manage sales taxes in QuickBooks Online.

Should you encounter any challenges with Sales Tax Liability Reports processes in QuickBooks Online, please don't hesitate to share them with me. I'm more than willing to assist you further. I eagerly await your response and wish you a productive day!