How to Record Multiple Sales Tax Prepayments in QuickBooks Online

Do you pay your sales tax before it’s due? Do you make multiple payments?

I had someone ask me about this situation. They made multiple sales tax payments before the due date.

I don’t have a perfect solution but I do have one that works.

Quick Instructions:

  1. Wait until your sales tax status is Due
  2. Click Taxes -> Sales tax in the left side menu
  3. Click View Tax Return for the period you’re paying
  4. Click Record payment button
  5. Record a payment
  6. Repeat steps 3-5 

Keep reading for a complete walkthrough with screenshots:

Open Sales Tax

To navigate to the Sales Tax screen in QBO click Taxes in the left side menu. Then Sales tax in the pop-out menu.

Navigating to the Sales tax screen in QBO

I have Paid, Overdue, and Open sales tax.

I’ll click View Tax Return for the most recent, Open, sales tax.View tax return for an Open sales tax period in QBO

When tax is due you’ll see a green Record payment button. But this tax is open so there’s no option for recording a payment.

Record payment button isn't there when sales tax is Open in QBO

You’ll have to wait until the status is Due or Overdue to record the payments within QuickBooks.

Once the status is Due or Overdue you can record multiple payments to a single sales tax period. Let me show you how.

Record Multiple Sales Tax Payments

In the list of sales tax periods above it shows that I’m overdue in May and owe $63.03. I’m going to record multiple payments for that period.

This time when I click View Tax Return the Record payment button is there.

Record payment button when reviewing a sales tax period in QBO

I’m recording a payment of $30. I enter $30 in Tax amount, enter a payment date of 5/15/23, and select the bank account the money came out of:

Recording a partial sales tax payment in QBO

May now shows that I owe $33.03:

A partial sales tax payment applied to a period in QBO

I’m going to repeat the process and record a second payment of $33.03 paid on 6/5/23:

Recording a second partial sales tax payment in QBO

The May period status is now Paid:

Sales tax period showing Paid in QBO

The downside to this is that you won’t be able to reconcile until these payments are recorded. The upside is that you CAN record multiple payments.

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This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Gentle Frog, LLC does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

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