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Honored Contributor
Posts: 20,827
Registered: ‎10-25-2010

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.

Honored Contributor
Posts: 11,784
Registered: ‎03-09-2010

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.

Honored Contributor
Posts: 10,216
Registered: ‎12-22-2013

Re: Taxes - did you know

[ Edited ]

@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.  

Honored Contributor
Posts: 35,156
Registered: ‎03-10-2010

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

Honored Contributor
Posts: 38,016
Registered: ‎08-19-2010

HSN used to never charge sales tax.

Now, they do.

Trusted Contributor
Posts: 1,493
Registered: ‎12-31-2012

Re: Taxes - did you know

[ Edited ]

@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.

Honored Contributor
Posts: 75,042
Registered: ‎03-10-2010

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.

New Mexico☀️Land Of Enchantment
Honored Contributor
Posts: 32,303
Registered: ‎05-10-2010

It's the sales tax.  Not income tax.

Esteemed Contributor
Posts: 7,663
Registered: ‎06-16-2015

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

Honored Contributor
Posts: 38,311
Registered: ‎05-22-2016

Re: Taxes - did you know

[ Edited ]

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.