Deposits that include already paid out sales tax - how do I enter this deposit?

You came to the right place for QuickBooks help, Nancy.

I'll be right here to guide you on how to handle customer payments along with the deductions. This way you can reconcile them properly. Follow the detailed steps below:

First, you need to create the customer invoice with the $10 amount. Then, receive the payment.

1. Choose Customers then Receive Payments.
2. To receive a new payment, click the “Create an Payment” on the left panel or click the + at the bottom of the list. To edit a payment, select a payment in the list on the left panel and edit the information.
3. Select or enter the information at the top of the Payments window.
4. Choose the outstanding invoices and charges you’re receiving the payment for by clicking in the column on the far left. A check will appear next to the invoice or charge. You can double-click any invoice or charge to open and make changes.
5. Pick Group with other undeposited funds.
6. Once all the information of the sale is entered, click Save.

Once done, deposit the Bank Deposit less the $2 tax payment. Here's how:

1. Go to Banking then Make Deposits. 
2. In the Deposits sheet, click the payments you’d like to deposit, and then click OK.
3. In the Deposits window, select the account you want to deposit into from the Deposit To pull-down menu, enter the date, and enter any memo for the deposits.
4. In the list of deposits, enter any amounts to deposit that are not payments. Click the first blank line to enter a new item; press Tab to move from field to field.
5. Enter the tax payment as a negative amount. Make sure to associate it to the sales tax posting account you want to use.
6. Click Save.

If you need anything else with recording customer payments with deductions, please let me know in the comment below. I'll be right here to help you. Have a good one!

Thank you so much for taking the time to respond. 

However, I did get stuck on the second part, step #5. 

I am now in the Deposits Window (QuickBooks Desktop version). 

On the Received From I have the customer name, the From Account it says Undeposited Funds, then the Amount. 

In the next line, I assume is where step #5 starts

5. Enter the tax payment as a negative amount. Make sure to associate it to the sales tax posting account you want to use.

6. Click Save.

Where it says Received From, From Account, and Amount in the next line, I don't see an option for the tax account I posted to record a negative amount. 

I appreciate the update that you gave, @Nancy Soto.

I'd like to add some more clarifications about entering a negative amount from your bank deposit.

From the Received From section, enter the name of the customer where the sales tax is coming from. On the From Account, look for the account where the sales tax payment was associated. Then enter the negative amount from the Amount field afterward.

Here's a sample snip on what the deposit will look like: 

To learn more about managing bank deposits in QuickBooks Desktop, you can always visit this link: Record and make bank deposits.

I'm also adding this guide to help you utilize and navigate the QBDT for Mac: QuickBooks Desktop Mac 2021 User's Guide.

Let me know if you need further help with your deposit. You can also provide a screenshot for a better picture of your concern if you have any. Have a great day!

So, create an invoice to match the bank deposit? What if my deposits are large sums of money from craft fairs with multiple customers represented in that deposit? For example, i may have a $3,000 deposit from a craft fair. With a tax rate of 7.75%, $215.78 of that $3,000 deposit is sales tax. How do I account for the sales tax in this deposit? 

You don't have to create an invoice, jazmineshannon.

You can directly create a bank deposit and enter the amounts per line item as suggested by my colleagues. Just make sure that the deposit total matches the amounts downloaded in your bank feeds so you can match them. In the From account dropdown on the second line, select the second account. It is the account you use to keep track of your taxes. Then enter the amount you want to put into the second account as a negative value. 

You can use this link that will help you categorize your transactions: Add and match Bank Feed transactions in QuickBooks Desktop. 

To see past deposits and the transactions you combined, you can run a report. 

1. Click the Reports menu. 
2. Select the Banking section.
3. Find the Deposit Detail report, then select the Run icon.

The report lists all of your recorded bank deposits. You can select individual deposits to get more details. 

Keep me posted if you have follow-up questions about Banking. I'm always here to help you more. Take care!