No Sales Tax on Labor

Hi there, Kathy.  Let me explain and assist you in editing it. 

In QuickBooks, it is important to make sure that the said service item is taxable or not taxable. In your case, the service item is saved with a taxable status. 

You can follow these steps to change it: 

1. Go to Sales, located on the left navigation panel.
2. Under Products and services, find the item that you wanted to change into a non-taxable item. Then click Edit.
3.  Look for Sales tax. If it's taxable, you can change it to non-taxable by clicking the Edit sales tax. 
4. In the Other options, you can choose whether you want it to be Taxable or Nontaxable. 
5. Click Save and close. 

Now, you can see in your report that the service item is no longer taxable.  

When printing your estimates and invoices, you can use this article as a guide to do it:  Download and Save Sales Forms and Statements

Feel free to reach out if you have other concern/s. I'm just here to assist you. Take Care! 

This does not resolve the issue. The Labor Item is set up correctly. The Estimate and the Invoice are showing on screen correctly. When they are printed, the labor item has the tax box checked, as though tax is being calculated when it is not. 

Thanks for coming back. We can perform some troubleshooting steps together to resolve your issue about printing invoices with the correct tax status in QuickBooks Online (QBO), kathyemersoncpa.

Aside from performing the recommended steps provided by my colleague. We can log in to your account using an incognito browser. Private browser prevents saving cache and cookies that sometimes cause errors when running frequently visited websites. Here are the useful shortcut keys you can use to access one:
 

• Ctrl+ Shift + N for Google Chrome
• Ctrl + Shift + P for Mozilla Firefox and Microsoft Edge
• Command + Shift + N for Safari

Then, try printing the invoice again. Here's how:

1. In the left navigation bar, go to Sales, then Invoices.
2. Find an invoice you want to print.
3. Under its ACTION column, use your Drop-Down Arrow (▼) icon.
4. Select Print.
   

If it works, return to your default browser and clear its cache. Every so often the cache becomes overwhelmed with older data which can potentially cause viewing and performance issues. Clearing it will refresh the system, and you'll be able to work with a clean slate. Switching to another compatible one to help rectify the issue.

However, if you're still experiencing the same issues, I recommend reaching out to our support team so they can take a look at this further and be able to investigate the root cause behind such behavior. They have the tools to pull up your account in a secure environment.

Additionally, you can use the Sales Tax Liability report to check the amount of sales tax you owe. To run and customize this report, you can find more information in this article: Check how much sales tax you owe in QuickBooks Online.

As always, feel free to read the topics from our help articles in case you need tips and related links while working with QuickBooks in the future.

If you have any further questions regarding invoices and sales taxes in QBO, feel free to reach out. I'll be here to help you out. 

Was a solution ever found for this? I am having the same problems with the "T" showing up on non-taxable items (but its not being calculated as tax). Its confusing for the customer to see the T when it shouldn't be there.

I tried troubleshooting and clearing the cache but its not fixing the issue.

Hello there, @jywllc.

I'd like to route you to the right support group that can best securely handle this concern.

Since you've already performed the basic browser troubleshooting steps and still the issue continues, I suggest contacting our QuickBooks Support Team. They have the necessary tools to securely check your account to investigate further about the T showing up on non-taxable items. Also, they can create a ticket for investigation if needed.

Here's how:

1. On your company file, go to the Help menu.
2. Select Contact Us.
3. Enter your concern, then select Let's Talk.
4. Choose a way to connect with us:

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

You may refer to this article for more details about the support schedule: QuickBooks Online Support.

I'm leaving these articles as your future reference in handling customer invoice payments and sales tax payments in QuickBooks:

• Record invoice payments in QuickBooks Online
• File your sales tax return and record sales tax payments in QuickBooks Online

Feel free to comment again below for clarification or additional concerns about managing sales taxes in QuickBooks. I'm always here to assist you.