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circletax1
Level 2

Sales Tax Not Calculating Correctly on mark up

Can someone please tell me why I have things checked as taxable and it's like qbo thinks it knows better than I do as to what is taxable.  And then if it's going to only tax certain amounts on my invoice why doesn't my report at least reflect these numbers.  We use POs and mark ups.  Hopefully the screen shots appear....here is the way the invoice was put in...Everything has the green check by it saying it's taxable.  The sales tax rate is 8.975 (4.225 + 1.375 + 3.25 + 0.125).  So based on the boxes I checked as taxable it should be $492.56.  However based on the tax that is calculated the only things that are being tax is the $2375 & the 1598.40 (the markup isn't taxed and neither is the shipping/markup).  However if you look at the report it is showing taxable amount is $4649.33 (which would include the products plus the markup...only the shipping is showing as exempt).  Please tell me how to fix this or why is it doing it like this?

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