Sales tax reports FAQs

What is the "expected sales tax due" report?

The new "expected sales tax due report" can be found when you click on each individual state on the TaxJar dashboard. It looks like this:

As you can see, the "expected sales tax due" report gives you very detailed information on how much sales tax you've collected at the state and local district level. If there's a problem, this level of detail will help you determine where the error lies.

Which report is used for AutoFile: Expected or actual? 

AutoFile is based on the expected sales tax due report, which means that when you are enrolled in this service, the total we expect to file will be based on the estimate you see in the expected sales tax due report. We have found, over the course of filing thousands and thousands of returns, that the state's calculation is very close to the estimate you see in the expected sales tax due report, so we provide that estimate to give sellers advance notice of the amount the state is going to expect to be paid. 

• At this time, our reports are based on the transaction information we receive from your cart and if you didn't collect tax on a transaction at the time of the sale, our system will see that the sale is untaxed, but if we're not able to see an explanation from your cart that tells us why the item was not taxed, it will be treated as taxable. 
• Because the states demand very specific detail on untaxed items, and if we do not currently receive enough information to properly classify your untaxed sales, we do not want to file a return that results in a penalty notice or an audit for your business, which is why AutoFile is based on the expected report.

Why is a state on my dashboard orange?

The states in orange are states where we  suspect you might be over or under-collecting sales tax.

If you see orange on your dashboard, don't panic! It doesn't necessarily mean there is a problem with your amount of sales tax collected, and there are a few scenarios (detailed below) why you may see orange even if you are collecting correctly.

• This report is a guideline to help you ensure you are collecting the right amount of sales tax.

This is what it looks like when there  might be a problem with a state:

If you see an orange state on your dashboard, you can click on the state to drill down and see where the problem might be on the "expected sales tax due" report.

Why are my "actual sales tax collected" and "estimated sales tax due" report amounts different?

The actual sales tax collected report shows you data based on the taxes you have actually collected. The expected tales tax due is an estimate of what we think you may owe based on your sales totals.

• If you haven’t been collecting taxes, this report can help give you an idea of what you should have collected or what you should be collecting.

My expected sales tax due seems off in Arizona, Pennsylvania, Tennessee, Texas or Virginia. Why is this? 

If your expected sales tax due seems off in these states it's likely because you have not set up an address on the "Account" screen. Make sure you've set up an address by logging into TaxJar, clicking "Account" then entering an address under your Business Profile or for the state in your State nexus settings.

I'm already collecting taxes. Why does my Dashboard and expected report say I'm not collecting enough?

There are a few reasons why these two totals could be different:

• If you sell on Amazon, we address more specific reasons you may be over-collecting and under-collecting here.
• You aren’t collecting sales tax through all platforms - Double check that you have sales tax collection set up through all the shopping carts and marketplaces you sell on. You can find out more about setting up sales tax collection on common e-commerce channels here.

I make tax-exempt sales. Why does my Dashboard and expected report say I should have collected tax on those orders?

Because your cart doesn't send additional detail to explain why an order was untaxed, TaxJar can’t automatically recognize when an item is tax-exempt, but we have features you can use to classify your sales that fall into these categories. Once you categorize those sales, the Expected Report won't view those transactions as taxable.

1. You sell wholesale orders or you sell orders to a tax-exempt entity, such as a government entity or a charitable organization.
   1. If that's the case, you can exclude those orders from the Expected Sales Tax Due calculation by marking those individual orders as exempt as we describe here.
2. You sell non-taxable (exempt) or reduced tax items. If your products that fall into tax-exempt or reduced tax categories*, you can tell TaxJar more about which items are exempt so both the Expected Report (and AutoFile) will recognize which sales should be exempt.  
   1. If your products fall into tax-exempt or reduced tax categories,* you can tell TaxJar more about which items are exempt so both the Expected Report (and AutoFile) will recognize which sales should be exempt.
   2. You can do this by selecting a specific product category for all items you sell on the Exemptions tab here.
   3. Once you've fully set this up, your Sales Tax Reports will exclude the exempt or reduced tax items from the Expected Sales Tax Due Estimate.

The product categorization feature to exclude exempt items is available for sellers who are using specific carts or marketplaces; we explain more in this article.

• If you make sales on platforms outside of these supported platforms, you sell exempt or reduced tax items, and you have tax collection set up correctly in your cart, we recommend that you stick with the totals in the "Actual Sales Tax Collected" Report for the time being.

Are refunds included in the Adjustments/Presumed exempt totals?

• In some state Reports, a refund from a previous period can be reported in the next upcoming return. This effectively reduces the gross sales total for the period when the refund took place, which would also reduce the amount of taxes owed during the time frame as well.
• In other state Reports, if a return has already been filed, and a refund takes place after the return is filed, the state may require you to file an amended return to get a refund for a return that took place in a previous period, rather than deduction those returns from the next filing period's return.
• We discuss this in more detail here in this blog post.
• The adjustments/presumed exempt amounts in our local reports reflect shipping (if shipping is not taxable in the state) and any transactions where you have not collected sales tax.

For Amazon FBA Sellers:

I see a lot of states on my dashboard. Do I really have to collect sales tax in all these states?

You would only need to collect in the states where you have sales tax nexus.

How do I know in which states Amazon gives me sales tax nexus?

Amazon FBA sellers generally have sales tax nexus in states where Amazon stores their inventory in an Amazon Fulfillment Center. TaxJar will detect the states where you have nexus because of FBA inventory and automatically add them to your Dashboard with an Amazon badge next to the state name.

We tell you how to remove a state from your dashboard here.

AutoFile is based on the e xpected sales tax due report, which means that when you enroll in this service, the total we expect to file will be based on the estimate you see in the expected sales tax due report.

Over the course of filing thousands and thousands of returns, we have determined that the state's calculation is very close to the estimate you see in the Expected Sales Tax Due Report, so we provide that estimate to give sellers advance notice of the amount the state is going to expect to be paid.

• At this time, our Reports are based on the transaction information we receive from your cart and if you didn't collect tax on a transaction at the time of the sale, our system will see that the sale is untaxed. (Please note, we do support marketplace facilitator-collected sales tax for these platforms/carts.)
• We strongly recommend categorizing your products and designating your customers as exempt. Otherwise, we're not able to see an explanation from your cart that tells us why the item was not taxed. 
• The states demand very specific detail on untaxed items. If we do not currently receive enough information to properly classify your untaxed sales, we do not want to file a return that results in a penalty notice or an audit for your business, which is why AutoFile is based on the Expected Report.

How can I see actual vs. expected tax amounts for each transaction?

If you have a TaxJar Professional subscription, you can see the actual vs. expected detail for individual transactions in two places: the Transactions page detail for the order as well as your CSV exports.

• This data will pinpoint the difference between TaxJar’s actual and expected reports for each state. 
• You can use this information to identify potential adjustments that could make the actual sales tax collected more accurate. Further, this feature will also help with any reconciliations and other transaction analyses you might conduct.

In-app view

To see this in the app, visit the Transactions page and click the "+" next to the transaction you want to review. 

• On the next screen, you'll see both the Actual amount of tax collected for the order as well as the Expected Tax Due estimate for that order.

CSV Export View:

To see this in your CSV exports, export your transactions into a .csv file and you’ll see a column for the Actual Tax Collected and the Expected Tax Due estimate for each transaction:

What's the difference between the actual and expected reports?

There are two versions of each individual state Sales Tax Report. 

You can view this in the tabs "actual sales tax collected" and "expected sales tax due" : 

What's the difference between these Reports?

1) The actual sales tax collected tab in your report shows the actual amount of tax you're collecting through your cart.
2) The expected sales tax due tab in your report is our estimate of what the state will expect you to remit.

How does this help me?

This feature helps you keep an eye on whether or not your tax collection is on track at any given time.

Are you new to compliance but you haven't started collecting yet? Or, do you need to go back and estimate the amount of tax that you should have collected in the previous filing periods?

• The expected sales tax due report can help in both cases. We have found, over the course of filing thousands and thousands of returns, that the state's calculation is very close to the estimate you see in the expected sales tax due report, so we provide this estimate in addition to your actual report to give sellers advance notice of the amount the state will expect to be paid.
• Related: How to file a sales tax return (when you haven't collected any tax).

What if I have a question regarding the amounts in one or both of my reports?

Please email support@taxjar.com and include as much information as possible regarding the numbers that you were expecting to see in the report(s). We appreciate you providing specific details such as:

• Which Report are you referencing (or if both, please confirm this);
• The exact amounts you're seeing in your reports and the section of the report where this amount is currently displayed; 
• Actual tax collected amount or export of these numbers from your cart if possible. 

Where do I view an estimate of taxes I owe?

You can view an estimate of what you should have collected in the Expected Sales Tax Due Report for each state.

To see this Report, click the "Sales Tax Report" button for any state on your  TaxJar Dashboard.

Once you have the Report open, you can see an estimate of what you may owe inside of your TaxJar local Report for each state when you click on the " Expected Sales Tax Due" tab, seen below:

Where do I find my sales tax reports?

You can view your automated sales tax reports from your Dashboard by following these steps:

Click the "sales tax report" button for any state on your  TaxJar Dashboard to open the report:

Once the report is open, you can use the navigational arrows at the top right of the sales tax report to select the filing period you would like to view:

My report says I owe $0. Why?

Expected sales tax due report can show you an estimate of what you may owe for the time when you weren't yet collecting. (See an example in the image below.)