Hi there, @Sheilac12

Here's some information regarding the difference between the Tax Payment screen and the Tax Liability Reports in QuickBooks Online.

If you come across a situation where the tax due amounts displayed in the Sales Tax Liability Report (STLR) and the Pay Sales Tax window do not match, there could be a possibility that both the reports have different date ranges and/or report basis. 

To resolve this issue, you may perform one or all of the following solutions in the given order.

Solution 1: Ensure the dates match.

Check if the ending date of the Sales Tax Liability Report matches the date in the Show Sales Tax Due field.

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 STLR. Ensure the basis is the same.

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 transaction dates.
3. The dates on these transactions impact the numbers on the STLR. 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.

Solution 4: Check for future-dated transactions.

A future-dated transaction may cause the issue. The Pay Sales Tax window can show a lower number than the Sales Tax Payable column of the STLR because the Pay Sales Tax window reflects some future transactions (though not invoices or sales receipts).

Set the STLR to All Dates and see if it matches the Pay Sales Tax window.

Solution 5: Other Troubleshooting Tips

• 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.
• Check the Sales Tax Payable account. QuickBooks set up this special account and will not let you delete it. You can rename it, but regardless of what you name it, QuickBooks records all Sales Tax transactions to that account.
• Do not create sub-accounts under the Sales Tax Liability account.

Additionally, here is an article that you can read to learn how to determine if your transaction or customer is exempt from sales tax, and how to set up a customer or product with a tax exemption: Understand and set up sales tax-exemptions in QuickBooks Online

Don't hesitate to let me know if you have additional questions about your Tax reports in QuickBooks. I'm always here to help. Take care always.