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!
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.Originally Posted by Tradd
"Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein
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... $$$$$$
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.
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.
"Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein
Gosh that is strange! haha.
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.
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