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KrishRaghav
January 17, 2025
Question

State sales tax wrongly calculated

  • January 17, 2025
  • 2 replies
  • 0 views

I have brought this multiple times earlier to quickbooks about the wrong sales tax calculation.     For the State of Illinois, quickbooks calculates only the state sales tax and does not calculate the county/ city level tax.   I had a workaround where I move the Destination address to the Shipping from address and the sales tax is calculated properly.    The same thing happened now for Missouri State tax.    We are at a loss now as the sales tax was not calculated properly for the last quarter.   

 

I tried the same trick on moving the shipping to address to Shipping from address to calculate the tax and it worked. 

 

Would Qb have a permanent fix for these sales tax calculation.   Can any one help on identifying the states that QB have issue with calculating correct sales tax.   So we can be prepared for unknown and try to move all the destination address to shipping from address??

 

Thank you

    2 replies

    FishingForAnswers
    FishingForAnswers
    January 17, 2025

    @KrishRaghav  "Would Qb have a permanent fix for these sales tax calculation."

     

    Judging by the threads over the past couple years, signs point to no.

     

    "Can any one help on identifying the states that QB have issue with calculating correct sales tax."

     

    You could probably just search for Sales Tax on this community and find quite a number of threads identifying problems with sales tax calculations for specific states.

    S
    SheandL
    January 17, 2025

    I appreciate you bringing this issue to our attention and providing a workaround to get the state sales tax calculated correctly in QuickBooks, Krish. It sounds like you've been experiencing this issue for quite a while, so let me connect you with our live support team to have it checked further.

     

    Our live support team has the tools and expertise required to securely access your account and determine the cause of this issue. They will handle your account information with utmost confidentiality and work diligently to resolve the matter efficiently.

     

    To contact them, here's how:

     

    1. Log in to your QuickBooks Online account.
    2. Go to the Help (?) button.
    3. Choose between the Assistant tab to get help from out experts, or the Search tab to enter your question and find Help articles.

     

    Moreover, for Simple Start, Essentials, or Plus subscribers, our support team is available from Monday through Friday, 6 AM to 6 PM PT, and on Saturdays from 6 AM to 3 PM PT. If you are an Advanced subscriber, our support is accessible 24/7.

     

    For more details, please refer to this article: Get help with QuickBooks products and services.

     

    Also, I'll share these articles you can bookmark if you want guidance in managing your sales tax in QuickBooks effectively:

     

     

    If you require further help with this issue, please don't hesitate to post in this forum, Krisha. We are always here to help whenever you need us.

    K
    KrishRaghavAuthor
    January 20, 2025

    Hi Shean,

     

    I have brought this issue 18 months back talking to multiple people and nothing has been resolved.   I dont know if anything is going to be done and would not like to waste my time talking to some random support team who are unable to help and says the issue has been referred to back-end team.   If you have the connection to right channels, can you bring up this issue to them.

     

    Thank you

    L
    LorraineMo
    February 17, 2025

    Here's my take on the QBO Sales Tax rates, based on using QBO for multiple states for several years.

    QBO Sales Tax appears to only work correctly on sales in states that are part of the Streamlined Sales and Use Tax Agreement (SSUTA).  Those 24 states are:

    Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

     

    The states on this list that I have filed in have correctly identified and calculated State, county, muni, transit area, housing area, etc. components of sales tax.

    The only state NOT on this list that I file in is Illinois, and as you say, QBO ONLY calculates state tax.

    For each IL customer, I need to look up the municipality and tax rate on IL DOR website, set up a special combined tax rate on QBO, set up a temporary sales site on IL DOR website, manually calculate WI state tax by adding all of the taxable sales from all of the (pages of!) special tax rates, and enter manually on IL DOR website.

    It is a time consuming PITA every month.

    K
    KrishRaghavAuthor
    February 17, 2025

    Thanks for your response.

    I am able to overcome this by just filling out the shipping destination address to the Shipping from address, and it calculates all the county taxes properly for IL state.

    L
    LorraineMo
    February 17, 2025

    That wouldn't work in Wisconsin because we are a destination based tax state; if I put in our WI ship from address, it will charge WI sales tax, not Illinois.

     

    However, I went in to start January Sales Tax this morning, and QBO is showing State, County, Muni, and RTA districts for Illinois sales for the first time.  So something changed between last month and this month.  

     

    I came on here to see if I could find any info on this change; I'm not sure if I can trust it LOL.

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