Online purchases and sales tax

[agnes]

Aren't you supposed to report it when doing your tax return?

[UnderProtest]

You are technically responsible for paying it. Stores that have a physical presence in that area are required to collect it and submit it to the government (thus fulfilling your to pay it). Stores that do not have a physical presence are not necessarily required, but some sites, like Amazon, are collecting it due to increased pressure. Income tax and sales tax are two different things. Above is sales tax only.

[raangoli]

Aug 11, 2016 12:13:02 GMT -5 agnes said:

Aren't you supposed to report it when doing your tax return?

Yes, this was my understanding as well.

[LoveTrains]

In my state, you are supposed to report "out of state purchases" when you filing your personal income taxes each year. You then pay the appropriate SALES tax with your income tax.

I have no idea what one does if your state does not have an income tax.

Some states, such as massachusetts, have safe harbor clauses. You put in your income and then it estimates how much you might have spent on out of state purchases and gives you an amount to pay.

Amazon does not yet collect sales tax in my state on purchases made online. They do in many states, and they often start collecting when they open up offices, distribution centers, etc. I shipped something to a friend in Mass the ohter day and noticed that amazon now collects sales tax in Mass, but they just opened up a big site in Fall River so I was wondering if that was why.