Were sorry, QuickBooks encountered an error while calculating tax. Try reselecting the tax rate or reentering the product/service item and saving the form again.

Welcome to the Community, Stella. 

I am here to address your concern about the error you received after trying to save an invoice with your taxed products in your QuickBooks Online (QBO) account.

Upon checking our records, there’s currently an ongoing investigation on saving invoices with taxed products. Since the Community team is a public forum, I recommend contacting our support team. Since the Community team is a public forum, I recommend contacting our support team. In this way, you’ll be able to have secure access to the most recent information and updates on this subject. We assure you that our Product Engineering Team is committed to finding a solution and resolving this problem as soon as possible.

Here’s how:

1. At the upper right corner of your screen in your QBO account, click Help (?).
2. To get started, select one of the tabs:

• Assistant: Get quick, personalized answers by selecting a suggestion or typing a question. Talk to a human for further help.
• Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us.

As a workaround, when creating invoices, you can use a custom tax rate instead of location-based taxes on your products while generating invoices. So that you can save invoices and not be prompted with an error message.

In addition, if you're interested in learning more about closing the fiscal year and preparing for the new one in QBO, I suggest taking a look at this article: A year-end guide for QuickBooks Online.

I appreciate your patience as we’re still working on this. Don’t hesitate to comment below if you have any QBO-related feature questions. I’ll be here to help you out.

I've had the same problem since early November and have 3 help desk tickets open for it. They just closed all the tickets Tuesday but the problem is still there and I can't book any sales receipts. For me, this happens when I have 2 items which are taxed at different rates. ie in NYC personal services is city only, 4.5% and retail products is City/State/MTA 8.875%.