How do I adjust my sales tax?

Hello alittlesuga1,

There are 2 types of taxation systems in QuickBooks:

1. If you have automatic taxation center you can choose among created by QuickBooks Tax Agencies:

a. choose Taxes->Sales taxes in the left side menu. press Sales tax settings at the top right corner (please)

c. click on Add Agency button at the right top corner and select any US agency you need

2. If you have non-automatic taxation center (mostly used for non-US countries) you can create your own tax:

a. Click on Taxes in the left side menu.

b. Press Add tax button at the right top corner.

I have also made screenshots for you. Please see them attached.

1. Automatic taxation center

2. Non automatic taxation center

I'll share with you the two options on how to adjust your sales tax in the program, @alittlesuga1. 

If you're using the automated Sales Tax Center, let's first create an account for the sales tax adjustment. You can set up an expense account if you need to increase your sales tax due. To decrease the amount, set up an income account. With this, I'd suggest consulting your accountant to determine the appropriate account and detail types. Once verified, proceed with the steps below. 

1. Go to Accounting from the left menu.
2. Select Chart of Accounts.
3. Click New.
4. Choose Income or Expense from the Account Type drop-down. 
5. Select the account’s Detail Type.
6. Name your adjustment account, such as Sales tax due increase. 
7. Hit Save and Close.

Second, let's go to the Sales Tax tab to add an adjustment. I'll guide you how. 

1. Go to Taxes from the left menu.
2. Select the Sales Tax tab.
3. Locate the tax period you need to adjust and hit View return.
4. Click Add an adjustment.
5. Select the Reason for the adjustment.
6. Choose the Account for adjusting sales tax.
7. Enter the adjustment amount.
8. Click Add.

For detailed instructions, see the Add a sales tax adjustment section through this article: Create Or Delete A Sales Tax Adjustment. 

If you're using the old Sales Tax Center, let's check the Make Adjustment box when recording a sales tax payment. Then, enter the adjustment amount and its reason. After that, select either an income or expense account to track it. You can refer to the first batch of steps above if you haven't created an account for this. See the screenshot below for your visual reference. For more information, view the Adjust a sales tax payment through this article: Manage Sales Tax Payments. 

Furthermore, you can always run the Sales Tax Liability report in the program. It provides you a detailed look at the taxes you owe and why you owe them. Also, it helps you ensure everything is accurate before you file your return to the tax agency. Just go to the Reports or Taxes menu to complete this task. 

I'll be right here to help if you need anything else. Enjoy the rest of your day, @alittlesuga1. 

How do you add and adjustment to round down?  My actual sales tax return is -.02 then what QB calculated.  However - the adjustment does not allow to add a negative adjustment.  It says "This value is out of range.  Please provide a positive value."

I frequently owe a few cents less than what QB has calculated, so I need to be able to add a deduction adjustment much more often than I need to add.

Also, my QB shows my return is due on the 20th...it's actually due on the 25th in Kansas.

Lastly, the new sales tax center is awful.

You have me to help you enter an adjustment,  jjthomewood,

When making a negative adjustment, ensure that the account is an Income account. Let me guide you how:

1. From the Taxes tab, select Sales Tax.
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. Choose an income account.
6. Enter the Adjustment amount, and then select Add.

With regard to the sales tax interface, I appreciate your feedback. I'll share this with our Developers team so we can study the look of the new sales tax center.

For more information about the process, you can check save this reference: Create or delete a sales tax adjustment.

I'm just a post-away if there's anything that I can help. Keep safe!

new 2021 QB version is not entering negative amount to adjustment when following the exact instructions you posted. I get a credit for paying early, just trying to enter credit under income..etc..

Never had problem until I used the new version, and apparently from other posts, I am not alone.

Hi kat43!

You won't need to enter a negative amount if you want to reduce your sales tax. Just select the option that says Reduce Sales Tax By, and then enter the amount in the field provided.

Now, you can delete your existing sales tax adjustment. Then, create a replacement using the steps stated above.

If you need more help, feel free to go back to this thread. Have a good day!

I don’t see #3 select add  an adjustment after clicking on view return 

Happy to help, @Freddy8. I'll make sure you can see the Add an adjustment tab in no time!

I'll provide a screenshot of the whole process so that you can get your taxes done quickly and easily. Refer to the attached photo below for your reference: 

If the issue persists, I'd suggest pressing the F5 on your keyboard to refresh the connection. Then log in and out if necessary. 

If it's the same problem, I'd recommend logging in to your account through incognito. This way, we can check if it's a browser-related issue. 

Refer to the keyboard shortcuts below: 

• Ctrl + Shift + N (Google Chrome)
• Ctrl + Shift + P (Firefox)
•  Control + Option + P (Safari)
•  Ctrl + Shift + P (Microsoft Edge)

Once logged in, follow the steps again to verify if you already have the Add an Adjustment tab. If it works, return to your regular browser and press the CTRL+ Shift and Delete keys on the keyboard to clear the cache. 

Furthermore, check out these articles below to learn how to refund tax and determine if your sale is exempt from tax in QuickBooks Online:

• Refund sales tax
• Conducting nontaxable sales

If you have a question about QuickBooks, feel free to ask me. I'll be in my bunk, Freddy8