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FAQ for filing of taxes

by Intuit• Updated 1 week ago

Learn how to file your sales tax returns and fix filing issues in QuickBooks Online

You can file your sales tax returns in QuickBooks Online. This gives you the peace of mind you need, and the convenience you deserve.

File your taxes

Here’s how you can file your taxes:

In QuickBooks Online, go to Taxes, then select Sales tax.
From the Action column, select File return.
Select Add now to enter the tax account ID and/or the EIN/SSN, or select Edit if you need to change it.
Verify the total sales amount, non-taxable sales, and taxable sales.

Note: These three fields aren’t available for edit because they automatically populate from the sales tax liability report.

Verify the taxes at the state and local level.

Note: The tax originating in state isn’t available for edit because it automatically populates from the sales tax liability report.

You can add on sellers purchase, also called use tax, and QuickBooks will automatically update the total.
You’ll be prompted to add the adjustment for use tax directly on the form. You can select an account you’ve already created or create a new one if needed.
Add the payment information.

Note:

QuickBooks will transmit the information to the Department of Revenue.
QuickBooks doesn’t process, collect, or remit the payment.
QuickBooks only sends the AC habit details to the Department of Revenue who in turn collects the payment.
It can take up to five business days for a payment to be collected by the Department of Revenue after a successful submission.

After you verify the tax details and add your payment information, select the disclaimer, then select File and Pay.

Note:

It will take a few seconds for the status to change in QuickBooks. The status will show as pending after you select File and Pay.
It can take a couple of hours for QuickBooks to receive confirmation of the submission and acceptance from the Department of Revenue. In some cases this may take up to two business days.

Frequently asked questions

How do I file my sales tax returns?

In QuickBooks Online, go to Taxes, then select Sales tax.
Note: If you collect sales tax in a state that’s ready for filing, you’ll have the option to sign up to a paid plan.
Select Try now and complete the sign up.
Note: After you complete the sign up, you can start filing your sales tax returns.

What do I need to file my return for sales tax?

Note: You must register for sales tax with the state where you collect and file your sales tax returns.

Valid state issued sales tax ID or SST ID
Your EIN or SSN at the time of registration for sales tax

Tip: You can get these details from your state online sales tax account.

Can I use the feature in QuickBooks if I'm not registered for sales tax?

To file your sales tax from QuickBooks, you must register the business for sales tax first.

Will QuickBooks do the registration for me?

No. States may require some info about the business, info that isn’t in QuickBooks. In order to register for sales tax you’ll need to complete the process with your state agency.

Why can’t I see the option to file after I’ve enabled sales tax in QuickBooks?

Filing isn’t available yet in the state where you collect sales tax
You may have set up or used custom tax rates

Note: We currently have filing available for monthly and quarterly frequency only. Other filing frequencies aren’t available in QuickBooks.

Why can I file my sales tax in one state but not in other states in QuickBooks?

Our product teams are working with every state so we can support filing in all states. Each state has its own rules and regulations, so it may take a little longer for us to roll out the feature to all states.

How is my sales tax paid?

Sales tax can only be paid using ACH debit. We’ll send this via a secured transmission to the state along with your sales tax return.

How long will it take the state to accept my return?

It can take up to 48 hours to receive confirmation from the state. As soon as we receive confirmation, QuickBooks will notify you via email. You’ll also see the status update in QuickBooks Online.

Why did I receive an email from QuickBooks saying my return was rejected?

The state may reject a return for many reasons. The most common reasons are:

Invalid or incorrect state tax ID or SST ID
Invalid EIN or SSN
Not registered for sales tax
The state agency service may be down for maintenance

What do I do after the state accepts my return?

You can record your payment in QuickBooks.

Can I submit use tax along with my sales tax?

Yes, you can. When you load the tax form, you’ll see the option to include your use tax.

Can I include adjustments such as credits or pre payments in the return?

The filing is currently limited to sales and use tax without any adjustment. We’ll soon include the ability to file with all the adjustments.

What happens after I file a return with a refund?

Once the state accepts the return, they’ll manually review and approve it. If eligible, the state will contact you. Or, you may also contact them for an update on its status.

Can my accountant file my sales and use tax returns?

Yes. As long as your accountant is a valid user in QuickBooks and has the details needed, they can do so.

What do I do if the liability on the tax filing form isn’t correct?

Run the sales tax liability report for the same period and compare them.
Check for overrides you may have used on invoices.
If you still see a discrepancy, let us know.

What do I do if the rounding on the tax form is off?

QuickBooks will automatically update the rounding in accordance with the state agency's guidelines when you submit a return. You don’t need to do any adjustments.

Note: If the difference is unusually bigger or smaller, check any adjustments that you made.

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