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Honored Contributor
Posts: 29,033
Registered: ‎03-09-2010

Delaware is a tax free state, great place to shop!!

Here in MD, we get charged tax from the Q on shipping. We pay no tax online on HSN or SHQ or JTV.

Honored Contributor
Posts: 12,990
Registered: ‎03-09-2010
On 5/14/2014 lisadpa said:
On 5/13/2014 Shem said: You do realize that you have to pay state taxes on online purchases when you do your tax return in April? So, you either pay it when you purchase or in April. Either way you pay tax.

I have worked for HR Block for 9 years, and I do about 95 returns each tax season. I don't have a single client who declares sales tax. It's totally unproveable, you have to be a little crazy to declare that and pay taxes on it!

LOL! ....I was thinking, Good luck with that! I can't imagine anyone offering to actually pay taxes on items bought that weren't taxed at the time of purchase. Most people don't willingly offer the government money.

Regular Contributor
Posts: 199
Registered: ‎03-11-2010
On 5/14/2014 haddon9 said:
On 5/14/2014 lisadpa said:
On 5/13/2014 Shem said: You do realize that you have to pay state taxes on online purchases when you do your tax return in April? So, you either pay it when you purchase or in April. Either way you pay tax.

I have worked for HR Block for 9 years, and I do about 95 returns each tax season. I don't have a single client who declares sales tax. It's totally unproveable, you have to be a little crazy to declare that and pay taxes on it!

LOL! ....I was thinking, Good luck with that! I can't imagine anyone offering to actually pay taxes on items bought that weren't taxed at the time of purchase. Most people don't willingly offer the government money.

I don't even bother asking my clients if they have any to declare!!!!!!

Respected Contributor
Posts: 4,833
Registered: ‎03-09-2010

Our taxes are 8.75%. Too high for comfort, but we either pay it or move. Do I like it? Not at all, and I wish I were in a state with no state tax. But no matter what I buy or where I buy from, I'm going to have to pays that tax. The other alternative is not to buy anything.

Esteemed Contributor
Posts: 6,221
Registered: ‎08-09-2012
On 5/14/2014 adelle38 said:
On 5/13/2014 kittymomNC said:

Boy, there seem to be a lot of sarcastic people on the boards today. Taxes definitely are not controlled by any company, but the poster is entitled to ask her question and have an opinion.

Some states require taxes to be paid on the shipping as well as the item you're purchasing, and some states don't tax shipping. And apparently, from what some of the posters say, some states don't tax clothing. My tax rate is 7.75% on apparently <em>every single thing I buy</em>, and <em>our state taxes FOOD at 2%</em>! Now that's something to be upset about. I moved here from Maryland many years ago, and I was stunned to see that food was being taxed, although they have actually lowered the rate on that from what it was. That said, I'm in a red state, and they love to say that they haven't raised taxes here, they just put "fees" on all kinds of things that never had fees before, so--taxes in "disguise". Our state is slowly turning purple and hopefully someday blue, and maybe then something can change.

We live in the same state and when I moved here I was shocked at the regressive taxes here. Lawmakers won't tax the rich but the working poor pay tax on everything from food to property tax on vehicles. I'm not optimistic about "turning blue." I've been here for 30 years and we were making progress, but we've been going backwards for the last 5 years.

With what has happened here in the last year or so, I think a lot of people who may have been the "go with the flow" types are now getting fed up with the agenda. That and the ever-changing demographics because of more "open-minded" people moving to the state for jobs in the RTP area etc., gives me hope that eventually we will be at least purple, if not blue, and things won't be so one-sided.

Trusted Contributor
Posts: 3,697
Registered: ‎03-09-2010
On 5/14/2014 haddon9 said:
On 5/14/2014 lisadpa said:
On 5/13/2014 Shem said: You do realize that you have to pay state taxes on online purchases when you do your tax return in April? So, you either pay it when you purchase or in April. Either way you pay tax.

I have worked for HR Block for 9 years, and I do about 95 returns each tax season. I don't have a single client who declares sales tax. It's totally unproveable, you have to be a little crazy to declare that and pay taxes on it!

LOL! ....I was thinking, Good luck with that! I can't imagine anyone offering to actually pay taxes on items bought that weren't taxed at the time of purchase. Most people don't willingly offer the government money.

I declare my sales tax. It's illegal not to and WE are the government. Are you saying it's ok to cheat on your taxes?

It's always a victory for me when I remember why I entered a room.
Honored Contributor
Posts: 33,580
Registered: ‎03-10-2010

I live in Ohio and we have to pay tax on s/h. About 20 years ago we did not.

We are taxed on everything except food here. I know going into making any on-line purchases to add the tax into my final total.

I'm shocked that any tax preparer is encouraging people to cheat on their taxes. And by not declaring on-line purchases if you are supposed to, you are cheating on your taxes. Absolutely I include mine. I'm not taking the chance of getting audited and busted over that.

Regular Contributor
Posts: 199
Registered: ‎03-11-2010

No, of course I'm not encouraging anyone to cheat on their taxes. But as a practical matter, most people don't even know about this, and wouldn't have that number ready for me even if I did ask them. I don't know any preparers that would send a client home for this number. I don't even track this myself, I shop online a lot and have no idea if I have undeclared sales tax.

From a practical standpoint, even if audited, the IRS, or in this case, the state, wil choose the areas it decides to audit and there is no way for you to get "busted" on that. It's not like they can force you to produce all of your shopping invoices to look for sales tax. It's a teeny tiny area of revenue for the states, they wouldn't concentrate their limited resources on that. Mostly, they audit expenses you declare or missing income.

I absolutely knew I'd be accused of encouraging people to cheat on their taxes by at least one person {#emotions_dlg.biggrin}

Honored Contributor
Posts: 33,580
Registered: ‎03-10-2010

lisada, I see posters all the time on this board say their tax preparer has told them not to worry about it so I didn't necessarily mean you. But IMO a tax preparer is the one that should be informing people as to the tax laws if they don't know them. Ignorance of the law is not an excuse.

I've been through audits with clients at my job and it's not something one ever wants to go through. I also disagree that it's a "tiny" area of revenue for the state. I would bet it's a pretty significant form of revenue. There are a lot of people who choose to order things on-line simply because they are able to avoid sales tax and there are a lot more people who order on-line now more than ever simply because of the convenience.

There have been instances where our clients want us to prepare a return but don't want us to include a one time income that they aren't 1099'd for and the IRS isn't notified they rec'd but it is taxable. Our firm will not prepare that return because it's fraudulent and we don't want our name attached to it.

Honored Contributor
Posts: 16,242
Registered: ‎03-09-2010

Raider- I think they do adjust. I "snowbird" between Florida and NY. NY taxes are several percent high than Florida's and when I buy the same things in both places, I pay two different final costs.

I don't know NJ law - no tax on clothes and shipping/handling? no tax on clothes but tax on S&H? or what? Check your laws and then call CS if they're not collecting what the law requires.