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Level 1

How can i fix the with held tax amount hile receiving paymmet from customer

1 Comment
QuickBooks Team

How can i fix the with held tax amount hile receiving paymmet from customer

By following these instructions, the withheld tax amount will be fixed! @userjamalshah-mapl.

There are several processes to handle customer's withholding in QuickBooks Online. You’ll want to set up a withholding tax expense account first to track the charges.

Step 1: Set up a withholding tax expense account:


  1. Go to the Gear icon and then select Chart of Accounts.
  2. Select New.
  3. From the Account Type drop-down, select Other Expense.
  4. From the Detail Type drop-down, select Other Miscellaneous Expense.
  5. Name the account "Withholding Tax Expense," then Save and Close.

Step 2: Set up a withholding tax expense item:


  1. Click the Gear icon, then choose Products and Services.
  2. Press the New button, then choose Service.
  3. Name the item "Withholding Tax."
  4. From the Income account drop-down, select the withholding tax expense account that you’ve just created.
  5. Hit Save and close.

Once done, please proceed to Step 3 and 4 found in this article to create a credit note so we can apply it to the invoice payment.

Check out this reference for more insights on how to record multiple, partial, and joint invoice payments in QuickBooks.

I'm always here to help and provide you additional assistance if you have follow-up questions about the payment. Stay safe and have a great day.