How do I record a sales tax write off to reduce my sales tax payable liability?

To record a sales tax write off, you'll have to create an income account first, Boyd. Let me walk you through the process

Before anything else, it’s important to note that we'll have to use the correct account type when adjusting sales tax.

Since you want to reduce your sales tax payable liability, let's create an Income Account:

1. Go to Taxes, then select Sales tax.
2. Enter the date range in the Due Date Start and Due Date End ▼ dropdowns, then select Refresh.
3. Find the tax period you need to adjust, then select View return.
4. Select Add an adjustment.
5. Select the reason for the adjustment from the Reason ▼ dropdown menu.
6. Add an adjustment date.
7. Select the account for adjusting sales tax from the Account ▼ dropdown menu.
   
   • Choose an income account if you need to decrease the tax due.
8. Enter the adjustment amount.
9. Select Add.

Once done, please proceed to step 2 of this article to learn how to add an adjustment: Create or delete a sales tax adjustment in QuickBooks Online.

Moreover, I recommend seeking assistance from your accountant for proper and accurate recording.

If you have any further questions or concerns about reducing your sales tax payable liability, please don't hesitate to contact us again. Keep safe.