Sales tax amount on sales tax center does not match sales tax liability report

This isn't the kind of service we want you to experience, hendersonlock.

Let me make it up to you and ensure you're able to know why the sales tax amount doesn't match with the Sale Tax Liability report.

The first thing you can check is the Sales Tax Payable account. QuickBooks sets up this special account and won't let you delete it.

When troubleshooting sales tax issues, start from the beginning by checking your sales tax preferences, sales tax items and sales tax groups to be sure they are set up correctly.

You can follow these solutions on how to fix the issue:

Solution 1: Ensure the dates match

Check the Sales Tax Liability Report ending date and make sure it matches the date in Show sales tax due field:

1. Go to QuickBooks Reports menu.
2. Select Vendors & Payables, then Sales Tax Liability.
3. Delete the From date.
4. Ensure the To date on the report matches the date in Show sales tax due through box on the Pay Sales Tax window.
   
   

Solution 2: Ensure your Preference is correct

Your Sales Tax Preference controls the basis of the Pay Sales Tax window, but you can change the basis of your Sales Tax Liability Report (STLR). Ensure the basis are the same.

1. Go to QuickBooks Edit menu.
2. Pick Preferences, then Sales Tax.
3. On the Company Preferences tab, note the selected basis in the When do you owe sales tax? box.
   • As of invoice date - Accrual basis
   • Upon receipt of payment - Cash basis.
4. Ensure your STLR basis matches the preference. If not, change the report basis.
   
   

Solution 3: Audit the Sales Tax Payable Account

1. In the STLR, quickzoom (double click) the amount in the Sales Tax Payable as column.
2. Look for sales tax payments, journal entries, adjustments or regular checks (paying sales tax liability) and check the transactions dates.
3. The dates on these transactions impact the numbers on the STLR.
4. Either adjust the date of these transactions or adjust the ending date of the Sales Tax liability report to include or exclude applicable sales tax payments, journal entries, adjustments or checks.
   
   

I'm adding these links for future guide:

• Pay sales tax
• Sales Tax Liability Report: Total sales is different from total income.
  
  

Let me know if you need additional information by commenting below. I'll be right here whenever you have follow-up questions about your STLR.

Where is the Sales Tax Preference option now? I can't find it anywhere in the settings with some of the recent changes to QBO. Thanks! 

Good morning, @lauralee9. 

Thanks for joining in on this thread. I can point you in the right direction of where the Sales Tax Preference option is in your QuickBooks Online (QBO) account. 

If you're referring to Solution 2 from my colleague above, those steps are for QuickBooks Desktop (QBDT). Allow me to provide you with the right steps. 

1. Go to the Reports tab on the left-hand menu bar. 
2. Enter "Sales Tax Liability" in the search bar and click on it. 
3. From there, you can change any preferences from the report. 

To see additional settings for sales tax, press the Tax tab and go to the Sales Tax Settings option in a blue hyperlink. In addition, here's a guide that can help you and your business in the future: Sales tax. 

These steps should do the trick. If you have any trouble along the way, just let me know. I want to make sure that you're able to get back on track. I'll always be here to lend a helping hand. Have a great day! 

How do you make a negative adjustment? It only allows me to make a positive adjustment, but the amount my state’s website calculated is a few dollars less every single time. 

Thank you for joining us here in the Community, @ChrissieW.

I'm happy to share an idea to add a tax adjustment so you can match it with the state's website calculation.

Before adding a tax adjustment, you need to create an account for the adjustment. You can set up an income account to decrease your tax due and an expense account to increase.

Once done, you can now create an adjustment.

Here's how:

1. From the left menu, click on Taxes.
2. Choose Sales tax.
3. Locate the tax period to adjust, then click View return.
4. Select Add an adjustment.
5. Choose the Reason for the adjustment.
6. Select the Account for the adjustment.
7. Enter the Adjustment amount, then click Add.

For more information on the process of adding tax adjustment, refer to this article: Create or delete a sales tax adjustment.

I'm also adding this article to know more about automated sales tax in QuickBooks Online: Set up and use automated sales tax in QuickBooks Online.

Let me know if you have other concerns in adding tax adjustment. I'm just around to help. Take care always.

@Ethel_A 

Thank you so much! That worked like a dream.

I have been having the same issue as mentioned above. I made sure to check all the dates and sales tax settings and it still shows different amounts in the sales tax center vs liability report.

I have this issue for multiple states that we pay sales tax in.

Hello @ManagerCE,

I appreciate you for letting me know that you've already checked the dates and sales tax settings. Let me share some updates about the issue going on with your sales taxes in QuickBooks Online.

Currently, we're receiving reports from other users that the Sales tax return and sales tax liability report don't match. They're still working on it and conducting a further investigation because of the discrepancies.

But rest assured, we take cases like this with urgency and high regard. For now, I'd suggest contacting our Customer Care Team. They can add your company to the list of affected users.

This way, we'll be able to ensure you're in the loop about the investigation's status and its resolution. I recommend checking out our support hours before getting in touch with them.

To contact support, please follow these steps:

1. Click the Help tab in the upper-right corner.
2. Go to the Assistant tab.
3. Click Get help from a human.
4. Choose Chat with us or Have us call you. 

For additional reference, you can check out this article for more details about how to create a sales tax item and use it on your sales transactions in QuickBooks: Enter sales tax amount manually.

Fill me in if you have additional concerns about the sales tax figures in QuickBooks. I'm always here to help. Take care always.

I'm having a sales tax issue as well.  I have all "created" rates as we do not charge all the way down to the city level in California.  However, some of the counties are routing to a liability account that is NOT the CA BOARD OF EQUALIZATION account.  Is there a way to clear these up?  Please?  It seems like it's just a routing issue but I can't find the item anywhere to change it.

I want to ensure this is taken care of, @Sarah Roberts.

To fix this, I'd recommend getting in touch with our Customer Support Team. This way, they can pull up your account securely and help check the cause of the issue.

You can follow the steps given above to reach them. Check this link also for reference: QuickBooks Online Support.

I’m also adding an article with detailed information on how to edit sales tax rates:​ Edit Sales Tax Rate in QuickBooks Online.

Let me know if you have any other concerns or questions. I'm here to assist further.

the issue im having right now is that on my sales tax liability  report QB plain has the math wrong. EX: taxable sales 23,958.92 @ tax rate 1.5% QB says is 398.49 BUT it actually is 359.38.  ive been using QB desktop for years now and this is a 1st time for this issue. not even sure what i do .

It can be frustrating when the calculations are incorrect. No worries, there are a few things you can do to address this problem, jackpot.

To begin, I recommend double-checking the data recorded in the system. Make sure the tax rate was entered in QuickBooks accurately. 
 

If everything is correctly set up, make sure to update QuickBooks to the latest release. Doing this can address bugs or issues in the previous versions. Then, let's rebuild your company file data to fix data-related issues on a company file. The steps below will guide you through the process.

1. Go to File, Utilities, and then select Rebuild Data.
2. QuickBooks will ask to make a backup before it rebuilds your company file. Select OK.
3. Select where you want to save your backup, then OK. Don’t replace another backup file. Enter a new name in File name and select Save.
4. Select OK when you get the message Rebuild has completed.

Once done, go to the File menu and select Verify Data to check for additional damage.

If you have any specific questions, need troubleshooting assistance, or seek general guidance, the Community is always available to ensure your QuickBooks experience is seamless. Feel free to share your inquiry, and I'll be prompt in assisting you.