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File your sales tax return and record sales tax payments in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online289Updated 1 month ago

Learn how to file your sales tax return and record your tax payment in QuickBooks Online.

QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. Once it’s time to file, you can review what you owe first to make sure all the numbers look good. Then, you can use your up-to-date QuickBooks info to fill out your tax form.

After filing, you can record your new tax payment in QuickBooks so your sales tax payable stays up to date.

We’re rolling out the automatedsales tax system for all QuickBooks users. Check if you have the option to switch. If not, don’t worry. It should be available to you soon.

If you still use manual sales tax, here’s how to manage sales tax payments in Quickbooks Online.

Note: QuickBooks Online does not support amended sales/use tax reporting. It is always best practice to consult with the relevant US tax agency to obtain current and clear guidance on amending a sales/use tax return in your jurisdiction.

To watch more how-to videos, visit our video section.

Step 1: Review what you owe

If you haven’t already, make sure everything is correct before you file.

  1. Go to Taxes, then select Sales tax (Take me there).
  2. Check which return is due this month, then select View Tax Return.
    Note: If you need to file an older return, use the Tax Period Date dropdown menu to select a tax period or custom date range.
  3. Make sure everything is correct. If you need to add an adjustment for things like credits, discounts, or corrections, select + Add an adjustment.
  4. Take note of your gross sales, nontaxable and taxable sales, tax due, and adjustment amount (if you added one). You’ll need these numbers later when you fill out your sales tax return form.

Note: If you need a detailed look at what you owe, run your sales tax liability report for the same tax period. This is helpful if you want to review your taxable and nontaxable invoices, receipts, and other transactions.

Step 2: File your return with the right tax agency

After you review your sales tax, you can e-file your return on your tax agency’s website, or file by mail.

Most states encourage businesses to e-file. But if you can’t file online, you can check your tax agency’s website for more info on how to mail your return. While you can't e-file right in QuickBooks, you can manually enter your tax payment in QuickBooks right after you file to keep your sales tax info up to date.

  1. Go to your tax agency’s website to file your return online. If you haven’t yet, you might have to sign up for your state’s e-filing service.
  2. Fill out your sales tax return form. Refer to the gross sales, taxable sales, and tax due amounts you took note of in Step 1.
  3. Finish filing your sales tax return.

You may choose to prepay your sales tax. A sales tax prepayment (also known as accelerated payments) is like a deposit paid ahead of time to cover future sales tax liability before the due date. Prepayment requirements, calculations, due dates, and thresholds vary for each state.

To find out how your state handles sales tax prepayments, visit the IRS State Government Websites page.

Step 3: Record your tax payment in QuickBooks

Once you're done filing, it's time to keep your sales tax info in QuickBooks up to date. Here's how to manually record your tax payment to zero out your sales tax payable.

  1. Go to Taxes, then select Sales tax (Take me there).
  2. Find the return you just filed, then select View Tax Return.
    Note: If you paid for an older return, use the Tax Period Date dropdown menu to select a tax period or custom date range.
  3. Select a filing method, then select Record payment.
  4. Add these payment details:
    • Tax amount
    • Payment date
    • Bank account
  5. Select Record payment.
  6. Select Back to sales tax center.

Step 4: Check your filing status

If you filed online, go to your tax agency's website to check your return’s filing status. If you filed by mail, you can also call your tax agency directly to get an update on your return.

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