How do TaxJar Reports display Square tip money?

For sales beginning in Q4 of 2018, our system will detect if gratuities are listed in the transactions we import from Square.

  • When you hover over the question mark icon on the Deductions/Exemptions row of your sales tax report, our system automatically displays the gratuity amount as "Gratuities - Optional."
  • This allows you to report to the state how much you collected in tips. 

If you're enrolled in AutoFile, our system will report those sales as exempt when your return is filed.