Question

Paying Sales Taxes with credit card

Forum|Forum|6 years ago
January 30, 2020
6 replies
0 views

I would like to pay the Sales Taxes using a credit card, however, I don't have that option in the dropdown menu, the only account options for recording Sales Tax payments are bank account. The Sales Tax Payable acct is an Other Current Liability account. I can't reconile this account becasue payments made with ccard are not posted on that account. Please advise.

QuickBooks Desktop

KlentB

Let's make sure that you can reconcile your account, s diaz.

The option to pay your sales tax using a credit card is unavailable in QuickBooks Desktop. To reconcile it, we can select a bank to record it and manually clear the transaction. Then, we'll have to ignore the downloaded credit card transactions to eliminate.

Here' how to manually clear it:

Select List from the top menu bar.
Choose Chart of Accounts.
Select the appropriate bank account.
Choose the appropriate transaction.
Click the column between the PAYMENT and DEPOSIT column to clear the transaction.
Select YES to confirm.
Hit Record, then click Yes again to confirm the changes.

Here's how to exclude the downloaded credit card transactions:

Select Banking from the top menu bar.
Go to Bank Feeds, then choose Bank Feeds Center.
Choose the appropriate credit card account, then click Transaction List.
On the Transaction List page, put a checkmark on the box column to select the transactions you want to eliminate.
Click Batch actions, the choose Ignore.
Select Yes to confirm the changes.

Check out this article that will guide you in reconciling your accounts: Learn the reconcile workflow in QuickBooks.

To review your past reconciliations, you can run the Previous Reconciliation Report.

Visit us anytime if you have other concerns or require further assistance in handling your bank and credit card transactions. I'll be right here to keep helping.

R

rohal

So how do you get your credit card statement to reconcile if you are ignoring transactions? I don't download, I manually enter. In order for the balance to be correct I have to enter these transactions into the credit card register. What account do I code them to? As an aside, it is unacceptable to have to do any type of workarounds, when the simlple fix would be to allow credit cards to pay taxes. I am sure many states allow online payments, I can't believe you don't have a way to properly record them.

D

DFinc

Unless I am not seeing something..I was able to create a 'credit card charge/purchase' to pay my sales tax.

I entered the pay to detail to the tax agancy, the amount, and the date of the payment.

In the account menu, I used my 'sales tax payable' account and in the 'customer:job' I entered my tax agency as I have it listed for this sales tax account.

I also recorded the credit card convenience fee on the next line under the appropriate expense account.

It seems to have recorded the payment in all the appropriate places and reduced the liability.

Please advise if this does not record everywhere it needs to.

A

AileneA

Hello, DFinc.

Thank you for reaching out to us here in the Community. You're doing it right. To utilize the pay sales tax feature, you can refer to this article: Pay sales tax.

Then, you can set up and pay a credit card account to keep track of the charges and payments made.

Here's how to Set up credit card accounts:

From the Company menu, select Chart of Accounts.
Select Account or the plus + icon, then New.
Select Credit Card, then select Continue.
On the Add New Account window, enter the credit card name.
Note: If you are setting up a sub account, select the Sub account of checkbox, then select the parent account from the dropdown ▼.
Select Enter Opening Balance... then enter the account's balance and date.
Select Save & Close.

To learn more about this process, you can check out this article: Set up, use, and pay credit card accounts.

Please feel free to reach back out if you have further questions in QuickBooks Desktop, I’d be happy to answer it for you. Have a great day!

M

mauldin

I just put it in Clearing Account and then move with simple journal entry to credit card in question.

V

valvegod

I have the same issue trying yo pay sales tax with an existing/active credit card account. It does not show up in the drop down payment method for paying sales tax. I seems QuickBooks is not answering this question. Creating a new credit card account to resolve this issue is not an option.

K

katalysticd

Why does QB desktop not allow another "account" type for paying sales tax other than a bank account??

In these days of paying via credit card and earning rewards, my state allows me to pay sales tax via credit card. Come on QB!! I have to believe this is an easy fix to your programming.

R

ReymondO

Hi there, @katalysticd.

You can set up your credit card as a bank account in QuickBooks Desktop (QBDT). This way, you can use this account in recording your sales in QuickBooks.

If you already created this account, you can change its account type to a bank. Here's how:

Go to List and select Chart of Accounts.
Click the credit card account, then press CTRL+E.
From the Account Type drop-down list, choose Bank.
Select Save & Close.

For more details, you can also check out this article: How to add, edit, or delete accounts from your chart of accounts in QuickBooks Desktop for Windows.

You can add more accounts if you need to track other types of transactions. Here are different account types you can add to your Chart of Accounts.

The Community always has your back, so please let me know if you have any other questions. I'll be more than happy to help. Keep safe.

D

DMCar

Hi ReymondO. If I change my credit card to a bank account, then the account will no longer show up in the "enter credit card charges" and I won't be able to enter credit card charges and credits.

K

katalysticd

a much easier method:

1) make a CC purchase in QB to your tax agency for the full amount (sales tax payable plus the CC fee)

2) under Expenses tab:

- select sales tax payable account for just the sales tax portion of the payment

- select bank service charge account (or whatever you have set up for "fees") for just the CC fee amount.

This hits all the correct categories in one entry.

I

insightoc

You do not need to change the credit card type to a bank account just to make a sales tax payment with a credit card.

I was able to make the Sales Tax Payment from the Pay Sales Tax window by FIRST choosing the credit card account I wanted to use, then the date and then enter the amount.

For whatever reason (QB's infinite wisdom) this worked.

C

CharleneMaeF

I appreciate you for sharing the troubleshooting steps that resolved the issue, insightoc.

This will also helpful to all the users that encounters this sales tax issue. If you need help in managing and running reports, please let us know. We're always here to help you out.

I've also added our View All Help article for future reference. There, you can search topics that'll help you in completing your other QuickBooks tasks.

Have a great day ahead!

I

insightoc

The instructions by KentB are not correct.

I was able to make the Sales Tax Payment from the Pay Sales Tax window by FIRST choosing the credit card account I wanted to use, then the date and then enter the amount.

For whatever reason (QB's infinite wisdom) this worked.

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