Assign product tax codes (TICs) in QuickBooks Desktop

A Taxability Information Code (TIC) tells TaxCloud how a product is taxed. This article shows how to assign and manage TICs so QuickBooks Desktop calculates the right tax. For what TICs are and how to choose them, see Understanding Taxability Information Codes (TICs).

When you need to set a TIC

If you don't assign a code to an item, TaxCloud uses the default TIC set on your QuickBooks Desktop connection (from Set up your TaxCloud account). If that default is 0, items are taxed as general merchandise, which is correct for most products in most states. You do need to assign specific codes if you sell:

• clothing, in states with clothing exemptions
• groceries or food
• prescription or over-the-counter drugs, medical devices, or supplements
• services (labor, repair, professional)
• digital goods, SaaS, or downloadable software
• shipping as a separate line (see Shipping)

If you sell any of these, assign codes before you start invoicing in production — otherwise TaxCloud returns the wrong tax for some states.

How to assign a TIC

For QuickBooks Desktop, assign TICs in QuickBooks, on the item's custom Tax Code field (below). The plugin reads that field and sends the code with every line, so it's the reliable method and it survives item renames.

In QuickBooks (recommended)

The plugin reads a custom field named Tax Code on each item.

1. In QuickBooks, go to Lists → Item List.
2. Right-click an item → Edit Item.
3. If there's no Tax Code custom field yet, click Custom Fields → Define Fields and add one named exactly Tax Code (case-sensitive), checked For Items.
4. In the item's Custom Fields dialog, enter the TIC number (for example 20010 for clothing).
5. Click OK.

:::info Two different fields on an item are both called "Tax Code" — don't mix them up:

• The built-in Tax Code (a Tax / Non dropdown on the item) sets whether the item is taxable at all. Leave it Tax for taxable items.
• The custom "Tax Code" field you create above holds the TIC (a number like 20010) that sets how the item is taxed.

They share a name but do different jobs — the built-in one is taxable-or-not, the custom one is the tax category. (There's also a third, unrelated Tax Code on the customer record — the Tax/Non setting used for exemptions.)

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In the TaxCloud dashboard

You can also manage product TICs from the TaxCloud dashboard's Product Catalog. For QuickBooks Desktop we recommend the in-QuickBooks method above instead: the plugin identifies each item by its name, so renaming an item in QuickBooks breaks a TIC you assigned to it in the dashboard. Products also have to be added to the catalog yourself (Product ID, Product Name, TIC) — they aren't created there automatically from your invoices.

Classify a lot of items at once

For a large catalog, use the bulk round-trip in the plugin's Settings window:

1. Click Export Items — writes a CSV of every item and its current code.
2. Fill in the TIC for each item.
3. Click Import Item TICs and pick the file — it writes the codes back to QuickBooks. Safe to re-run.

Find the right code

• Understanding Taxability Information Codes (TICs) explains how to search for and choose the right code.
• The dashboard's TIC picker is searchable — type "clothing", "food", "shipping", etc.

Shipping

If you charge shipping on a separate line, assign the shipping code 11010 to your shipping item. Left at the default, TaxCloud taxes shipping as general merchandise, which is wrong in states that exempt separately-stated shipping.

:::info For California actual-cost shipping, 11013 is the right code. The general 11010 is more conservative (collects tax) and is the safe choice when you're not sure.

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Coming from Avalara?

Avalara tax codes (like PC040100) don't carry over — TaxCloud uses its own numbering. You'll re-classify items in TaxCloud after migrating; the bulk export/import above makes it a one-time pass. See Migrating to TaxCloud from Avalara.

Items without a code

An item with no code still syncs — TaxCloud applies your connection's default TIC. When the plugin notices unmapped items, it can show a count in the tray status ("N items are missing a tax code"). That's informational, not an error: if the default is right for those items, you can ignore it; if not, assign codes as above.