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QuickBooks error message: You cannot use the same tax item in both the line items and the txn tax.

The Tax type for the transaction was probably supplied from your default QuickBooks settings. This can be tested by trying to create an invoice in QuickBooks and seeing what Tax type is automatically chosen. If this is the case, go to Edit/Preferences/Sales Tax. In the Company Preferences tab there is a section to Set Up Sales Tax Items. Choose a different default tax, you may have to create a new one to accomplish this.
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