"Tax Paid at Source" Im a general contractor in WA state and wanting to see how QBO can figure out my tax paid at source deduction for monthly B

Thank you for posting here in the Community, @cameroncontracto. I’ll share some insights regarding Tax Collected at Source (TCS) in QuickBooks Online (QBO).

This tax is calculated based from the Sales value. That being stated, it is not calculated automatically. You’ll have to add a line item for the calculation to enter them manually.

You can refer to this article for detailed steps on how you can add product and service items to QuickBooks Online. Once done, apply the TCS deduction item on your purchase bill.

For future reference, I've also included this article on how to set up TDS.

Let me know if you have further concerns about taxes. The Community always has your back. Have a great day!

For each receipt?  That is a ton of work.  That is more than I am doing now doing it all manually.  I don't get why this in not a feature.  Everyone who buys any type of material and resells it in a state with sales tax has this deduction...unless they just pay tax twice on it and forget about it.  usually it is between $150-250 a month for me.  All it would need to do is be attached to purchase location and automatically when split or designated as a material then be calculated.  Same as if you were invoicing someone in a certain location and it is tabulated. 

Hello, cameroncontracto.

I understand that it saves much of your time having this feature available in QuickBooks Online. As mentioned by my colleague above, there isn't a way to automate the process. Since the tax on purchase is generally paid and filed by your vendor. 

If you want to track the Tax Collected at Source (TCS), you'll have to manually add it as a line item. 

Here's how:

1. Go to the Sales menu.
2. Select Products and services.
3. Click New.
4. Choose either Non-inventory or Service.
5. Add a name.
6. In the Category dropdown, select the category that best describes the product and services.
7. Select I purchase this product/service from a vendor.
8. Add necessary information, then choose the Expense account.
9. Choose your preferred vendor.
10. Once done, hit Save and close.

Once done, you can add it as a line item when creating an expense or a bill transaction.

I'm also adding the following resources below in case you want to track sales tax for your invoices and sales receipts:

• Set up your sales tax in QuickBooks Online
• Set up and use automated sales tax in QuickBooks Online

Don't hesitate to add any details below if you have further questions about Taxes. We're always here to help you.