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Avalara Help Center

Why is there a large adjustment under the Amount Due to Avalara details?


When reviewing your returns, you have found a large adjustment with a note similar to "Credit due to Company; contact Tax Administering Jurisdiction for refund of over-payment".


AvaTax Update


  • This adjustment was added to offset the amount that is being remitted to Avalara as you have a credit due to you by the state for the current period.

  • This is usually caused by a multi-month period (a frequency other than monthly) having a credit that offsets the payments already made to the state.

    • Example: Quarterly return with monthly prepayments

      • Month 1 had a liability of 10,000.00 and paid 10,000.00 to the state

      • Month 2 had a liability of 10,000.00 and paid 10,000.00 to the state

      • Month 3 had a liability of -25,000.00. 

        • This leaves a credit of -5,000.00 due to you by the state.

  • If the adjustment was not added, then you would have a credit amount that would look like it is owed to you by Avalara.

    • The adjustment is not reported on your return since it is created to offset how much is paid to Avalara.

Note: Any credits due to you by a state or jurisdiction will not carry over to future periods and it is suggested to reach out to the state directly for steps on obtaining a refund.