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What is a Carry-over credit?

Overview

You have seen references to "Carry-Over Credits" and would like to know what they are and how they impact your liability.

 

Environment

AvaTax Update

 

 

Resolution

  • A carry-over credit is a transaction with negative liability that is excluded from its intended filing period.
    • This is due to the positive tax liability not being great enough to apply the credit without filing a negative tax return.
  • The credit will continue to roll over to future periods until it can apply without making a negative return.
  • Carry over credits can be tracked by running the Liability Worksheet Carry Over Credit export report in the Admin Console.

 

 

 

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