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Pay sales tax with a credit card

The Pay Sales Tax window only includes bank accounts in the Account drop-down menu. You may, however, use a workaround to pay sales tax with a credit card. 
 

Detailed instructions

Intuit recommends 2 solutions for this problem. Choose the solution that works best for you.

Solution 1: Create a clearing account with which you can first pay sales tax, and then wash out to the credit card account

  1. Create a new bank account in QuickBooks called Clearing.
  2. In the Pay Sales Tax window, choose the Clearing account in the Pay From Account drop-down.
  3. Create a journal entry debiting the Clearing account and crediting the credit card account, and use the tax vendor in the Name column.

Solution 2: Make a payment to the Sales Tax Vendor using a Credit Card and the Sales Tax Payable Account

  1. Create the payment from your credit card account:
    1. From the Banking menu choose Enter Credit Card Charges.
    2. Choose the Sales Tax Vendor in Purchased From drop-down.
    3. Click OK if you see a warning.
    4. On the Expenses tab, choose the Sales Tax Payable account from the Account drop-down.
    5. In the Customer:Job drop-down, choose your Sales Tax Vendor.
    6. Enter the total amount due from the Pay Sales Tax window in the Amount field.
    7. Click Save & Close.
    Important: The Date paid should be within the period reported on in the Pay Sales Tax window.
     
  2. Link the payment to the liability in the Pay Sales Tax window:
    1. From the Vendors menu, choose Sales Tax > Pay Sales Tax.
    2. Enter the same date you used for the payment in the Show sales tax due through field to include the date the Credit Card Charge was made.
    3. Place Check Marks next to the appropriate positive and negative amounts you are attempting to pay.
      Note: These amount should total $0 when both amounts are selected.
    4. Click OK.

Important: Solution 2 will produce a $0 net check on the bank account specified in the Pay Sales Tax window. Please note Dates, Sales Tax Vendors and accounts specified must match for each Payment individually.

If this solution does not resolve the issue, please review other available QuickBooks support options for additional guidance. You can also read and post messages relating to your issue on the QuickBooks Community forums.

KB ID# HOW12878
9/17/2014 4:35:56 PM
PPRDQSSWS402 9102 Pro 2013 3e3f08