You have a carry-over credit that wasn't applied to the current tax liability period.
- Credits are only applied if the tax liability for the period is larger than the total credit amount.
- It'll carry over to the next period, until there's a period where the tax liability is greater than or equal to the full amount of the credit.
- You may also adjust the transaction(s) that produced the credit to break up the credit into smaller amounts that can be absorbed by your average tax liability.
- If the credit is too large and your period liability won't be greater than the credit, amended returns can be done.
- To have Avalara amend the original return, learn more here.
- You can also amend or file late returns directly with the state.
- This will create a credit with the jurisdiction.
- If the credit is smaller than the liability or equal to it, confirm that the credit is for the same kind of liability you want it to apply to.
- Credits for sales tax can't apply to consumer use tax liability and vice versa.
- To view all carry over credits, applied or excluded, you can run the Carry-over Credit export report.
Note: Carry over credits cannot be partially applied.