GST overpayment adjustment

Hi there, 

Sometimes you may have to adjust your sales tax liability for GST such as an over-payment. These represent the Goods and Services Tax collected by the Canada Revenue Agency. I'd be happy to show you how to create an adjustment in QuickBooks. 

You can adjust the sales tax liability in QuickBooks Online by following these steps:

1. In QuickBooks, select Taxes on the left menu and then Sales Tax at the top. Make sure you don’t accidentally select Payroll Tax if you pay taxes for your hires.
2. Next to Sales Tax, choose the tax agency associated with the return. This happens through a drop-down menu.
3. Select the Returns tab, look for the line item for the sales tax you want to adjust, and choose Prepare Return from the Action column.
4. Look for the sales tax line you want to change, and select Adjust.
5. Choose an Adjustment Date and Tax Rate.
6. Select an account from the Adjustment Account drop-down menu. Choose an income account if you owe less sales tax because someone failed to pay. Go with an expense account, such as Interest Expense or Non-deductible Penalties when owe the CRA more money in taxes.
7. Enter the adjustment amount in the Amount section.
8. You can enter a short description of the adjustment in the Memo field if you want.
9. Click the Save button to save the adjustment to your records.

Using accounting software, such as QuickBooks Online, keeps accurate records with regards to your taxes. QuickBooks Online can help you maximize your tax deductions. Keep more of what you earn today.

Give this a try and if you need further assistance, don't hesitate to reach out to our support team using this link.