How to set up taxable amount cap in Quickbooks?

I understand that setting a taxable cap amount in QuickBooks Online (QBO) is important for you, allprooffice01. Allow me to share some insights regarding the matter.

If you are referring to setting up a taxable amount cap in QBO, there is no option for capping, especially if it is an automated sales tax and exceeds $5,000 in sales. In this case, the entire balance will be taxed in automated sales tax. 

However, if you want to tax only up to $5,000, you can manually override its calculation and enter the correct amount. Here are the steps to do it: 

1. In your invoice or sales receipt, select See the math. 
2. Select Override this amount. 
3. Before entering the adjustment, read the provided options and steps. Then, enter the desired rate or amount. 
4. Choose a reason for making the change, then select Confirm. 
5. Select Save. 

Additionally, I recommend reading this article to learn how QuickBooks calculates sales tax: Learn how QuickBooks Online calculates sales tax

Don't hesitate to reach out to us if you have further questions about the taxable cap amount in QBO. The Community is always available to help. Take care.