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N660 Remark Code: Sales Tax Included in Payment

N660 means the payer included sales tax in the amount it reimbursed. It is informational: the tax was paid, either as part of the item's payment or as its own amount, so there is nothing separate to collect from the payer.

Quick facts

Code
N660 (RARC N660)
Status
Active In use since July 15, 2013.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Any separately billed tax that was folded into the item payment, or any tax above the amount the payer allows, is adjusted as a provider write-off.
  • PR (Patient Responsibility): Patient cost-sharing on the item, including the tax portion where the plan applies it, is reported under PR.
Official description
Sales tax has been included in the reimbursement.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N660 means

For taxable items such as some equipment and supplies, certain payers reimburse sales tax on top of the item’s allowed amount. N660 tells you that tax has already been built into this payment. You won’t receive a separate tax payment, and you shouldn’t expect one.

The remark is most common on durable medical equipment and supply claims, and on workers’ compensation and auto claims where state rules address reimbursement of tax.

How to read the remittance

  • Combined payment. The item line shows a payment that includes tax, and any separately billed tax line is adjusted to zero with CARC 235.
  • Separate payment. The tax is paid on its own line, and N660 confirms it.
  • Tax on allowed, not billed. When the allowed amount is lower than your charge, tax is typically calculated on the lower amount, so it will be less than the tax you billed.

What to do

  1. Post the payment as received, and record the tax portion in the account your accounting practice uses for sales tax.
  2. Check the math if the tax seems low: compare the applicable rate to the allowed amount.
  3. Contact the payer if tax was applied at the wrong rate or for the wrong location.
  4. Do not bill the patient for tax the payer says it has already paid, apart from any PR cost-sharing.

N660 is not a denial, and no corrected claim is needed unless your tax amount or location was wrong. If your billing system sends tax as a separate line and the payer consistently combines it, ask whether it prefers a particular format, which will make posting simpler.

Codes that may appear with N660

  • CO-235 (Sales Tax): The sales tax adjustment; N660 clarifies that tax was accounted for in the payment.
  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The charge exceeded the allowed amount, which already includes tax.
  • N659 (This item is exempt from sales tax.): The item was exempt from sales tax, so no tax was paid.
  • CO-137 (Regulatory Surcharges, Assessments, Allowances or Health Related Taxes.): Regulatory surcharges, assessments, or health-related taxes.
  • N733 (Regulatory surcharges are paid directly to the state.): Regulatory surcharges paid directly to the state rather than to the provider.

N660 FAQ

Why does my separate tax line show zero if tax was included?

Some payers pay the item and the tax together on the item's line, then adjust the separate tax line to zero to avoid paying twice. The tax money is in the item payment.

How was the tax calculated?

Usually by applying the applicable state or local rate to the allowed amount of the item, not to your billed charge. Check your contract or the payer's policy.

Do I owe the tax to the state?

Your sales tax obligations depend on state law and are separate from the payer's reimbursement. Ask a tax professional.