Maximizing Tax Exemptions for Senior Clients: A Guide for Small Business Owners

[KayPT]

So, how do we enter no tax when we get a senior tax exempt client? I haven't been able to figure our how to change it so I have been paying their tax. Is there a better way? I would hate to tell them, sorry you have to pay tax on this even though they are exempt for all other things.

Thanks!

 

[Sheila]

I never knew Alaska did that! That is super cool!!The tax rate is based on the "ship to" address. So if it's direct to the customer, you could probably override to ZERO like we do here for military addresses. But if you are doing "ship to host" I don't think there is a way to override the one order to not charge tax. Your best bet is to just explain the situation to corporate tech support & ask them if there is a way to override it.

 

[Admin Greg]

There are a few different options for handling tax-exempt clients in QuickBooks. Here are three possible solutions:1. Mark the customer as tax exempt in QuickBooks: In the customer profile, you can select the "Tax info" tab and check the box for "This customer is tax exempt." This will prevent any tax from being applied to their transactions going forward.2. Create a tax code for tax-exempt transactions: In your Sales Tax settings, you can create a new tax code specifically for tax-exempt transactions. Then, when creating an invoice or sales receipt for a tax-exempt customer, you can select this tax code instead of the regular tax code. This will ensure that no tax is applied to the transaction.3. Create a non-taxable item/service: Another option is to create an item or service in your Item List that is set to be non-taxable. Then, when creating an invoice or sales receipt for a tax-exempt customer, you can use this item instead of a regular taxable item. This will also ensure that no tax is applied to the transaction.Whichever method you choose, be sure to test it out with a test transaction to make sure it works as expected before using it with a real client.