Which State Reports Reflect Prior Period Refunds?

TaxJar Reports currently support deducting refunds, returns and discounts from the gross sales total in the filing period when the refund actually took place for these states:

  • California: Effective October 2017
  • Washington: Effective November 2017
  • Iowa and New Jersey*:
    Effective June 2019
  • Alabama, Colorado & Virginia: 
    Effective September 2019 
  • Texas, Pennsylvania & South Carolina: 
    Effective December 2017

  • Arizona, Georgia, Kansas, South Dakota & Vermont: 
  • Effective November 2019
  • Utah
    Effective March 2020
  • North Carolina
    Effective August 2020
  • Indiana, Michigan & Mississippi
    Effective October 2020

The Reports for these states reflect prior period refunds which effectively reduces the sales total for that period, which would also reduce the amount of taxes owed during the time frame as well.

  • These automatically show up in your account as part of your Actual Sales Tax Collected and Expected Sales Tax Due Reporting for the listed States above, and are listed on your Transactions tab.
  • In Iowa and New Jersey*, the states want refunds to be reported as exemptions/deductions. 
  • In those Reports, the refunds that took place during the filing period will be displayed in the Report as exemptions/deductions for that period, even if the original sale was in a prior filing period.
As we mention here, West Virginia, North Dakota, Georgia, Kansas, Florida, and Maine accept negative amounts in their filings, so we will always deduct refunds from the previous periods from the period when the refund took place, even if it creates a negative amount.
  • You sold a pasta maker for $100 + sales tax in August, then filed your August sales tax return. A few days later, your customer returned the item and you issued a refund of the sale price plus sales tax. 
  • The sales tax refund will show up as a negative amount in your current period TaxJar State Report, but the state won't allow you to file a negative amount on your return.

How does this affect filing a return?

If you are  enrolled in AutoFile and a refund causes a negative amount during the current filing period, our system will automatically push those refunds to the next (future) filing period to be deducted from the gross sales when that return is filed.
If you are not enrolled in AutoFile and a refund causes a negative amount during the current filing period, our system will display an alert in the report to let you know that your refunds are causing negative amounts. In this alert, you'll see a button that says "Apply refunds to a future filing." If you click this button, your negative refunds will then be applied to future Reports to be deducted from the gross sales when you file your next return.