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Create or delete a sales tax adjustment

Learn how to adjust your sales tax due if you use Automated sales tax in QuickBooks Online.

With Automated sales tax, it’s easy to keep your sales tax records accurate. If you received a tax credit, discount, or fine, you can adjust the sales tax you owe. This way you don’t have to worry about making corrections when it’s time to file.

Here’s how to add or delete a sales tax adjustment in QuickBooks Online.

Add a sales tax adjustment

Step 1: Set up an account for sales tax adjustment

It’s important to use the correct account type when adjusting sales tax. Set up an expense account if you need to increase your sales tax due, or an income account if you need to decrease.

Note: If you already have these accounts, move on to creating the adjustment in Step 2.

  1. Select the Gear icon at the top, then choose Chart of Accounts.
  2. Select New at the top right.
  3. From the Account Type drop-down, select Income or Expenses.
    • If you need to decrease your sales tax due, set up an income account.
    • If you need to increase your sales tax due, set up an expense account.
  4. Select the account’s Detail Type.
    • Use Sales of Product Income for an income account.
    • Use Taxes paid for an expense account.
  5. Name your adjustment account (for example, “sales tax due increase”).
  6. Select Save and Close.

Step 2: Add an adjustment

  1. Select Taxes from the Navigation bar, and then go to sales tax tab.
  2. Find the tax period you need to adjust, and then select View return.
  3. Select Add an adjustment.
  4. Select the Reason for the adjustment.
  5. Select the Account for adjusting sales tax.
    • Choose an expense account if you need to increase the tax due.
    • Choose an income account if you need to decrease the tax due.
  6. Enter the Adjustment amount, and then select Add.

Delete a sales tax adjustment

You can also remove an incorrect sales tax due adjustment. After deleting the adjustment, you’ll no longer see it when you review your sales tax return on the Taxes screen.

  1. Select the Gear icon at the top, then choose Chart of Accounts.
  2. Find the income or expense account you used to add an adjustment.
  3. Select Run report.
  4. Select the adjustment you need to delete.
  5. Select Delete.
  6. Select Delete again to confirm.

Learn more

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