Sales tax publications and tax bulletins 2025

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A general sales tax is a tax imposed at one rate on retail sales of a broad range of items. A taxpayer makes the election by checking box 5a on Schedule A of Form 1040. If you elect to deduct state and local general sales taxes, you can use either your actual expenses or the optional sales tax tables.
Heres how to edit your sales tax rates. Go to Taxes, then select Sales tax (Take me there). Under Related Tasks, select Add/edit tax rates and agencies. Select the rate you want to change from the Sales Tax Rates and Agencies table, then select Edit. Edit the tax rate you want. Select Save.
When the company sells and item and collects sales tax, the debit would be to cash, and the credits would be to sales revenue and sales tax payable (liability). The sales tax is recorded as a liability because the company has to remit the cash to the government.
To record received sales tax from customers, debit your Cash account, and credit your Sales Revenue and Sales Tax Payable accounts. When you remit the sales tax to the government, you can reverse your initial journal entry. To do this, debit your Sales Tax Payable account and credit your Cash account.
Sales tax refers to when its added to the sales price of a good or service and is then charged by the retailer to the end consumer. The retailer then remits the retail sales collected tax to the government. Tax jurisdictions only receive tax revenue when a sale is made to the end consumer.
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The journal entry for sales tax is a debit to the accounts receivable or cash account for the entire amount of the invoice or cash received, a credit to the sales account and a credit to the sales tax payable account for the amount of sales taxes billed.
To do so, the company creates a journal entry debiting (or decreasing) its sales tax payable account by the amount of the tax paid. At the same time, the entry credits (or decreases) its cash account by the same amount, reflecting the outflow of cash to the tax authority.

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