topic Re: Taxes - did you know in Community Chat

Taxes - did you know

newname0 — Fri, 15 Feb 2019 14:16:25 GMT

That you have to pay taxes on products you buy on the internet?

I went crazy last year and bought about 500 on a jewelry site that I now have to pay income tax on to my state?

Holy molely!

Re: Taxes - did you know

CrazyDaisy — Fri, 15 Feb 2019 14:22:40 GMT

Yes, and it is not Income tax it is typically called sales or use tax.

Re: Taxes - did you know

grandma2pkmh — Fri, 15 Feb 2019 14:22:52 GMT

@newname0 Been doing that for years, state requires it.

Re: Taxes - did you know

happycat — Fri, 15 Feb 2019 14:28:18 GMT

Well, I thought we paid taxes on the stuff we buy on line when we purchased it? I guess it depends on the site. If I was going to have to pay someone, would I have gotten somethng by now?

Re: Taxes - did you know

deeva — Fri, 15 Feb 2019 14:28:49 GMT

Yes.

Re: Taxes - did you know

Bri369 — Fri, 15 Feb 2019 14:31:05 GMT

Yes, you have to pay taxes on internet purchases. When I did my taxes online, there was a line for that.

Re: Taxes - did you know

CrazyDaisy — Fri, 15 Feb 2019 14:33:05 GMT

@happycat wrote:
Well, I thought we paid taxes on the stuff we buy on line when we purchased it? I guess it depends on the site. If I was going to have to pay someone, would I have gotten somethng by now?

Most States over the years have added this to the State tax returns. They ask you to declare the amount you did not pay sales tax on and the assessment is made at that time.

Re: Taxes - did you know

nomless — Fri, 15 Feb 2019 14:34:45 GMT

@happycat wrote:
Well, I thought we paid taxes on the stuff we buy on line when we purchased it? I guess it depends on the site. If I was going to have to pay someone, would I have gotten somethng by now?

Some internet retailers do not collect state tax. And no, you don't get a statement of whay you owe.

During the year, you need to keep track of your internet purchases for which tax was not collected. At the end of the tear, add it all up, and that's the amount you will pay state income tax on. You declare it and pay the tax on your state income tax form.

Re: Taxes - did you know

pigletsmom — Fri, 15 Feb 2019 14:37:15 GMT

@newname0 You only do it if you didn't pay sales tax at the time of purchase so you need to make sure you didn't.

Re: Taxes - did you know

millieshops — Fri, 15 Feb 2019 14:37:50 GMT

Yes, I've known that for years. When I first found these Forums and posters were urging readers to buy elsewhere because there was no tax collected- that wasn't true for me. I'll save my soapbox speech for another site.

Re: Taxes - did you know

Carmie — Fri, 15 Feb 2019 14:38:04 GMT

Some out of state businesses will charge you your state's sales tax and forward it to your state's treasury.

But, other businesses especially if they are small, will not do that. You are required to pay sales tax on all purchases that are taxable in your state and are supposed to take care of that while filing your income taxes.

I doubt that most people actually do this though.

Re: Taxes - did you know

Nonametoday — Fri, 15 Feb 2019 14:58:40 GMT

One of my children purchases lots and lots of stuff from amazon, never paying any taxes. The old tax collector caught him. They knew what he had bought in the last 3 years, but they made him go back and document it all and forward it to them with taxes. Then they found a couple errors (things he had not documented) and charged him the taxes plus penalties. Best to pay your taxes upfront than behind with interest and penalties, which some states require.

Re: Taxes - did you know

sunshine 919 — Fri, 15 Feb 2019 15:07:31 GMT

@newname0 wrote:
That you have to pay taxes on products you buy on the internet?

I went crazy last year and bought about 500 on a jewelry site that I now have to pay income tax on to my state?

Holy molely!

Tax is included on my purchase everytime I order somethng on line. I remember maybe 10 years ago I only paid shipping and that was it. Then without warning taxes were also added.

Re: Taxes - did you know

Sooner — Fri, 15 Feb 2019 15:32:35 GMT

Our state passed a law about internet sites collecting taxes and now they do. Most of them.

Re: Taxes - did you know

SharkE — Fri, 15 Feb 2019 15:35:26 GMT

HSN used to never charge sales tax.

Now, they do.

Re: Taxes - did you know

EatWell — Fri, 15 Feb 2019 15:58:12 GMT

@newname0 wrote:
That you have to pay taxes on products you buy on the internet?

I went crazy last year and bought about 500 on a jewelry site that I now have to pay income tax on to my state?

Holy molely!

@newname0

Yes.

Didn’t your tax preparer tell you?’

I have known that for years.

Re: Taxes - did you know

Kachina624 — Fri, 15 Feb 2019 18:22:38 GMT

As of last summer, about July 1st, due to a Supreme Court ruling, all internet merchants are required to collect state sales taxes. If the OP bought her jewelry after that time, she may have already paid sales tax. This ruling was widely publicized; seems like many people missed it.

Re: Taxes - did you know

chrystaltree — Fri, 15 Feb 2019 18:24:43 GMT

It's the sales tax. Not income tax.

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RainCityWoman — Sat, 16 Feb 2019 01:37:44 GMT

Any site where I purchase online, I am already charged sales tax.

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SilleeMee — Sat, 16 Feb 2019 02:52:55 GMT

In my state the amount of sales tax I have to pay for internet purchases that had no sales tax paid up front has a minimum. In other words, if the price of the purchases amount to less than a certain amount then I don't have to pay sales tax on those items...the sellers don't have to send in my receipts to the state as proof of my purchases if those purchases don't amount to a certain dollar amount. So it's as good as not having to pay tax on it.