View Full Version : Do you pay your state's Use Tax?
I saw this on my NJ state tax form. Most people buy much more online and out of state than I do, so do you claim that? You're required to fill in the line, even if it's $0.00.
Honestly I didn't think I spent much out of state last year, but after adding it up (I keep great records), saw that I spent almost $500, mostly horsie stuff.
No one I spoke to so far claims it even though they're huge online shoppers. What are the chances of getting caught if you fill out a -0- or a fraction of your real amount?
in Illinois you have to pay a minimum of 25 dollars use tax on your income tax return. There's no way of getting around it.
They won't let you put down 0 on your form
fidgiegirl
3-24-13, 10:48pm
What is it? We don't have one, I guess, or at least not called this . . .
if your state doesn't require sales tax to be collected on online sales, then you are hit with it when filing your state income tax return.
ApatheticNoMore
3-25-13, 1:41am
My state started making about the only company I actually buy from online collect taxes if you know what I mean :)
I fill out a form for personal yearly and business quarterly. The personal one I don't think I've paid more than $25 because I don't keep records of out of state on-line purchases. The business one is a little easier to figure out.
I'll have to send them around $5,000 this year. Never paid it in the past.
Mine will amount to more than my small refund. Amazon is supposed to be moving to NJ later this year, which will take care of those purchases' taxes.
Maybe I'll claim part of it and just act ignorant if I get caught.
Miss Cellane
3-25-13, 5:29pm
My state has no sales tax; therefore no use tax. The only sales tax is for alcohol, cigarettes and restaurant meals, none of which I buy on line.
There are a few websites that like to greet me with a pop-up window when I visit them--"No Sales Tax on Orders to New Hampshire!!!!!!!" as if the company was doing something special for me. Way to take a simple truth, New Hampshire doesn't have a sales tax, and turn it into a marketing tool.
The Storyteller
3-25-13, 5:37pm
I don't remember seeing a question for it on our Oklahoma tax return, but will look more closely.
Because I own a small farm, I am able to avoid sales tax on all farm related purchases. Most of my purchases online last year were farm-related. Even bought a tub style chicken plucker through Amazon.
I don't know if Calif has it or not (and I just did my taxes today!) but I seem to remember seeing it on the form. I have never bought anything online so whatever I read about it in the tax booklet didn't apply to me and I skipped it or put in a zero,
With IL's, there is a certain amount you have to pay, depending on income. So, even if you're a senior citizen with no computer at home and don't buy online, you still have to pay the $25 min!
With IL's, there is a certain amount you have to pay, depending on income. So, even if you're a senior citizen with no computer at home and don't buy online, you still have to pay the $25 min!
Illinois is a pretty progressive state, taking from you whether you owe it or not. I do not pay the use tax through my state income taxes. If I did it wouldn't be much but I really don't believe my state is entitled to a sales tax on items I purchase in other states or even countries, and the entire concept depends upon you keeping accurate records of everything you purchase online. As long as it's voluntary, I'll choose not to play that game.
With IL's, there is a certain amount you have to pay, depending on income. So, even if you're a senior citizen with no computer at home and don't buy online, you still have to pay the $25 min! Well that sucks! I wonder how IL get away with that. $25 isn't much but when you are talking about a few million people who are like me and don't shop online, well... $$$$$$
awakenedsoul
3-25-13, 8:40pm
I filed through VITA a few weeks ago. He didn't mention it. He said that I didn't even need to file a return, but I just think it looks better to file each year. (Especially since some of my relatives didn't file tax returns when they should have...)
I buy a lot online, but I don't keep records, so I just did the $25 option. I certainly don't buy big stuff online. Just books and clothes, mainly.
Well that sucks! I wonder how IL get away with that. $25 isn't much but when you are talking about a few million people who are like me and don't shop online, well... $$$$$$
Taxes in IL DO suck. Actually one of the reasons why I'd like to move, if I didn't have a great support network here.
Not sure how it works in other states, but in mine, it is basically a consumption tax (equal to the states sales tax) on any items brought into the state from a jurisdiction with no sales tax, or with a lower sales tax than Ohio. In order to comply, you would need to keep track of every item bought in another jurisdiction and the amount of sales tax paid for each item. If you paid less than 5.5% (plus your county's additional, up to 7.5%), you owe the difference.
Strangely, there doesn't seem to be a credit for items purchased in jurisdictions with higher sales taxes.
iris lily
3-25-13, 10:14pm
...
Strangely, there doesn't seem to be a credit for items purchased in jurisdictions with higher sales taxes.
Gosh that is strange! haha.
Miss Cellane
3-26-13, 8:37am
With IL's, there is a certain amount you have to pay, depending on income. So, even if you're a senior citizen with no computer at home and don't buy online, you still have to pay the $25 min!
I think that the use tax also applies if you physically buy something in another state and bring it back to your home state. So if you drive to an neighboring state and buy something, even though you pay that state's sales tax, you are supposed to pay your home state's use tax as well.
A few years ago, Massachusetts tried to make New Hampshire stores collect Massachusetts sales tax if they made a sale to a Massachusetts resident. Many people from Massachusetts travel up to New Hampshire to shop to avoid the sales tax. That attempt got shot down in a hurry.
Miss Cellane
3-26-13, 4:59pm
It just occurred to me that New Hampshire doesn't have an income tax, either. So no state tax form to require a use tax.
We do have high property taxes, though.
I think that the use tax also applies if you physically buy something in another state and bring it back to your home state. So if you drive to an neighboring state and buy something, even though you pay that state's sales tax, you are supposed to pay your home state's use tax as well.
A few years ago, Massachusetts tried to make New Hampshire stores collect Massachusetts sales tax if they made a sale to a Massachusetts resident. Many people from Massachusetts travel up to New Hampshire to shop to avoid the sales tax. That attempt got shot down in a hurry.
Same thing with NYers going to NJ a while back. Apparently the NY tax authorities went to the malls closest to NYC in NJ, took down NY license plate numbers and then sent letters to those people reminding them of their tax obligation. People were not happy and that program ended very quickly.
Problem solved. My tax book gave estimated taxes paid based on incomes. I was able to enter $14. Not bad, since I really owed over $80. Shhhhhhh.
Tussiemussies
4-6-13, 11:17pm
Think you should pay the whole thing.....
I do not believe a public forum is a great place to post that you are cheating or thinking about cheating on your taxes, however you end the note. It really reflects on your whole person to others even though it might seem to be a small thing. Just a thought.
Do you want this to "get around", be posted in the newspaper, be talked about among those you know, affect personal and business relationships, etc. I am always amazed at what people will do "because it was only a little......." How you handle the little things of life is a good indication of what you will do when faced with a major decision.
ToomuchStuff
4-10-13, 12:39am
There is a use tax, for my state, but purchases (total) must be over a certain amount before you owe. I have never hit that amount in the time of my record keeping. (before I kept good records, neither of us would know)
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