QB Issue Resolution:

Currently there is no way to make only PART of a line item taxable or non-taxable.  So if you have the part and installation all summed up as 1 line item, its all tax or no tax.  You’d have to set them up as 2 separate line items and make 1 taxable and the other not.

Resolution for Issue 'How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?' available: Yes (Solved).
Source: Intuit Community forum.

How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Invoice
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!

Error Recovery for Invoice [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.

Get 50% off Quickbooks Online

Click Here for 50% off!

Additional Support Options: