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How do I add credit adjustment in a state?

Overview

The following sections describe the options for using state-issued credit when your client has an overpayment on their Sales and Use tax account with a jurisdiction.

Resolution

Request a refund from the jurisdiction

When your client receives a notification that the jurisdiction has a credit balance on their Sales and Use Tax account that is due back to them, they may request a refund directly from the jurisdiction. This is the suggested method as it will be easier to track that balance and the timeline needed to provide that refund to them. Most jurisdictions will follow this process but please note, for some jurisdictions, the only method available is to provide a refund of the overpayment and will require you or your client to reach out to the jurisdiction directly to initiate that process. There are also some scenarios that don't allow the utilization of the credit as payment towards their return due to the limitations of a jurisdiction's filing website or filing processes. Those jurisdictions are:

Add an adjustment in Returns Console

Approved credit balances can be applied as payment on a future return. We encourage that you or your client verify any available credit balances are still valid, and have received approval from the jurisdiction(s) to use as payment. If the state disallows the use of the credit on a return, any required amendments, associated penalties, and interest, and additional balances due would be the responsibility of you and your client to resolve directly with the jurisdiction. To utilize a state-approved credit balance to reduce the amount due on their return, adjust the credit amount. For details, see Add adjustments to the liability summary.

Please note that these credits can only be added to Returns Console for the period you intend to apply them.

This feature is currently only enabled for the following forms, but we are working to add it to more forms that allow this functionality:

  • Canada
    • British Columbia
      • BC
    • Manitoba
      • MB 2234
    • Saskatchewan
      • SK
  • United States
    • Alabama
      • AL 2100
      • AL 2105
      • AL 2410
      • AL 2610
      • AL 2620
      • AL 2630
      • AL 9501
    • Alaska
      • AK RSR
      • AK DILLINGHAM
      • AK DILLINGHAM10
      • AK HAINES
      • AK HOONAH
      • AK HOUSTON
      • AK JUNEAUCOMBINED
      • AK KENAI
      • AK KOTZEBUE
      • AK SITKAA
      • AK SITKAQU
      • AK TOGIAK
      • AK UNALAKLEET
      • AK UNALASKAQ
      • AK WASILLA
    • California
      • CA CDFTA401A2
      • CA CDTFA401A2 OUTLET
    • Colorado
      • CO DR0100
      • CO DR0100 Consolidated
      • CO DR0173
      • CO DR0252
    • Connecticut
      • CT OS114
    • Florida
      • FL DR15
      • FL DR15 Consolidated
    • Georgia
      • GA ST3OUTLET
      • GA ST3SALES
    • Idaho
      • ID 850
    • Illinois
      • IL ST1
      • IL ST1ST2
    • Iowa
      • IA 32022
      • IA WORKSHEETCU
    • Kansas
      • KS CT10U
      • KS CT9U
      • KS ST16
      • KS ST36
    • Kentucky
      • KY 51A102
      • KY 51A103
    • Maine
      • ME ST7
      • ME ST7B
      • ME ST7U
    • Massachusetts
      • MA ST9
    • Michigan
      • MI 5080SU
    • Mississippi
      • MS 72010
      • MS 72110015
    • Missouri
      • MO 531
      • MO 53C
      • MO 53V
    • Nebraska
      • NE FORM10COMBINED
    • Nevada
      • NV TXR01
      • NV TXR02
    • New Jersey
      • NJ ST50
    • New Mexico
      • NM TRD41412
      • NM TRD41413
    • New York
      • NY ST100
      • NY ST101
      • NY ST810
    • North Carolina
      • NC E500E536
    • Ohio
      • OH UST1
    • Oklahoma
      • OK SCU2000420041
      • OK STS2000220021
      • OK SVU2000520051
    • Pennsylvania
      • PA PA3R
    • Puerto Rico
      • PR PUERTORICO
    • Rhode Island
      • RI T-204R-Annual
        RI T-205
    • South Dakota
      • SD RVSTRTNMTS
    • Tennessee
      • TN SLS450
      • TN SLS450 Consolidated
    • Texas
      • TX 011140111501116
      • TX 0111401116
    • Utah
      • UT TC62MULTILOCATION
    • Virginia
      • VA ST7
      • VA ST8
      • VA ST9
    • Washington
      • WA BOCOMBINED
      • WA MULTIPURPOSEST
    • West Virginia
      • WV CST200CU
    • Wyoming
      • WY F41
      • WY F421
      • WY F43

NOTES: 

  1. The credit amount entered must not exceed the total tax liability after the discount. For example, if your tax liability is $100 and your discount is $10, the amount of the jurisdiction issued credit can be a maximum of $90.
  2. The credit amount can only be applied to tax liability due on a return. Credit amounts cannot apply to prepayments or items unrelated to Sales and Use tax calculations such as B&O tax and Litter tax.
  3. To add an adjustment, you must have a written notice regarding the credit balance.

Formal request required 

It is important to note that some jurisdictions require approval for using a credit balance as payment towards a filing. This way, they can move the credit to the appropriate period.

If you are planning to add your client's credit balance to Returns Console as an adjustment, please make sure to call the jurisdiction before reporting the credit to Returns Console. If this process is not completed and a credit is used on a return, your client may be charged penalties and interest. If the credit balance applies to multiple periods, this process will have to be completed for every period you would like the credit to be used in. Those jurisdictions are:

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