Income tax detail report shows incorrect paid amount

I'm here to make sure that your books are recorded accurately and accordingly, the way they should be, tmorse.

The invoice amounts and your tax payments will always differ in terms of figures. An income tax detail is a report that merely shows taxes that you've incurred on your expenses and received on invoices in your organization. While the customer balance detail shows what payments and invoices make up each customer's current outstanding balance. Thus, both reports aren't related and differ from each other.  If you're looking for the information of your customers who paid in full, you can run the Customer Balance Detail report. You may also want to see more detailed information about customers, suppliers, expenses, and more, you'll want to use the Transaction List by Customer report instead. However, for purely tax concern, you can use the Income Tax Detail report.

Aside from that, certain discrepancies showing on reports may also be due to one or more issues. You may want to check out this article for your reference: Profit and Loss Report Does Not Match A Sales Report. Furthermore, learn how to filter and customize data to get the information you need. I've added this article so you'll know how: Customize Reports In QuickBooks Desktop.

Fill me in if you have any questions about different kinds of reports in QuickBooks. I'll always be here to assist. 

My apologies for not replying sooner. I didn't get an e-mail notification that you'd replied.

I only brought up the Customer Balance Detail report as confirmation that all the customers were paid in full for last tax year. The real issue is the discrepancy between Original Amount and Paid Amount within the Income Tax Detail report. I don't understand why those values for each customer don't agree. Perhaps I don't understand what the Paid Amount is, but I haven't found any explanation in QuickBooks help. Intuitively, you'd think it would be the portion of the amount due that the customer actually paid. Is that not correct?

The business operated on a cash basis, and I ran the report on a cash basis. If I switch to accrual basis, the Paid Amount column disappears, which makes sense. What am I not understanding here?

Thank you,

Terry

Thank you for getting back to us, @tmorse.

Let me add some information about the amounts shown in the reports.

The amount in the income tax detail report is the original amount of the item without the tax added. The amount in the Customer Balance Detail report includes the tax the customer paid.

I recommend seeing an accountant or a tax specialist explain the taxes.

For future reference, you can run a Profit and Loss Comparison Report to compare your income and expenses for different periods.

Let me know if you have additional questions about taxes and reports in QuickBooks Desktop. You can click the Reply button below. I'm always here to help.

Thank you for responding. I live in a state that doesn't charge sales tax, so that shouldn't be an issue. The company operated on a cash basis, so customer charges were entered at the same time they were paid in full, so I don't understand why "paid amount" is a small fraction of "original amount." What am I misunderstanding?

Thank you,

Terry

I'd be glad to clear this out for you, @tmorse. Let me share further details as to why the Paid Amount is a small fraction of the Original Amount when pulling up the Income Tax Detail report in QuickBooks Desktop (QBDT).

I've replicated your scenario on my end. Based on your description, it seems that the transaction(s) created is taxable. That's why the amount paid is different (lesser) from the original amount. Please see the screenshot below for your reference.

The original amount (i.e., $35) is the item's actual price. While the paid amount (i.e., $32.48) is what the customer paid less than the tax amount. With that being said, I'd recommend verifying the transactions' details. To do this, pull up the Income Tax Detail report again from the Reports menu. Then, double-click each of the in-questioned ones.

Also, you may want to check out this article as your reference in case you need to know how QuickBooks generates reports: Understand reports. It also includes the complete list of available reports in QBDT.

Please don't hesitate to keep me posted in the comments if you have other reporting concerns or questions about managing sales and income taxes in QBDT. I'm always ready to help. Take care, and I wish you continued success, @tmorse

Thank you, Rea.

The first thing I checked is that sales tax is turned off in Preferences. It is. Therefore, there is no Tax column in the invoices, nor a drop-down box to set a location and tax percentage. None of the invoices show any balance due. In all cases, Payments applied = Total. I added Balance and Open Balance columns to the report. The sum of the Paid Amount column equals the final number in the balance column, which was the total income for the business last year, so the numbers do add up correctly. Each line from each invoice appears to be repeated multiple times in report, which is why the total of the Original Amount column (calculated in Excel) is an outlandish amount. Clearly, there is more I need to understand about this report, but I am reassured that the totals are correct.

Thank you,

Terry

Welcome back to the Community, @tmorse. I want to ensure your concern will be taken care of. 

Thanks for providing additional information about your issue. To further help you in reading the Income Tax Detail report, I recommend reaching out to your accountant. This is to check the details and the transactions to further verify what causes the different figures. If you're not affiliated with one, feel free to use our Find an Accountant tool to look for a pro advisor near you. 

You'll know about this by visiting this article: How QuickBooks generates reports. 

You'll want to customize your reports in QuickBooks Desktop (QBDT). Doing this will further help you to get the detailed information you need. Not just that, the program also allows you to save the modification to use it in the future. 

Let me know this goes. I'd be happy to hear any updates about this. Please add a reply if you have additional questions. Have a good one.