questionsdoes your state do this?

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I live in FL. No state taxes!

I still think that's quite comical though. :-D

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My state asks the same question. Guess it's a voluntary tax.

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I used to live in Ohio and the tax forms asked for this information. When my taxes got complex enough to require an accountant, he actually scoffed at me for paying it. I am a deeply conflicted socialist leaning wealthy person so I insisted that he write it up with the 'voluntary' online purchase taxes. I think it physically hurt him to do so.

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California asks for the same; it's entered as use tax. Not too many actually pay it, though.

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Pretty much every state requires you to do this, but hardly anybody does.

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I never buy anything online so nothing to worry about ;)

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Illinois does it. There's no way I'm keeping detailed records of everything I buy online. And of course, they don't have the money to figure out what everyone owes.

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I've heard about this, but never actually put a second thought about it. I've never heard of anyone getting audited for online purchases before.

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It is called use tax. http://en.wikipedia.org/wiki/Use_tax

If you actually put it on your taxes you might be able to deduct it right back on your federal return if you itemize.

(Not a tax professional)

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@scmtim: You can deduct it on the federal return whether or not you report it on the state form. But it is either state income tax or state sales tax, not both. And, the IRS lets you estimate your sales tax based on your income.

Maryland does not ask this question on the personal return.

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@mtm2: Not voluntary in the sense of "pay it if you feel like it," voluntary in the sense that the taxpayer must volunteer the information.

I think I've discussed this on these boards before, but if your state has a sales tax, you are obligated to pay a sales tax on anything you purchase. Internet sales taxes have (intentionally, I may add) fell into a compliance gap where the seller is not required to collect these sales taxes if the buyer is out of state, making it the buyer's responsibility to report and pay the requisite sales tax (technically called a "use" tax). At no point have internet purchases been exempted from sales taxes.

I haven't seen any of the state taxing bodies initiate any sort of enforcement action regarding the sales tax reporting lines specifically, but if they are already looking at your return and they see a 0 on that line, you can bet they're asking about it.

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@firebirdude: Psst. We're supposed to do that. And there's another tax we're supposed to compute as well but I can't think of it off the top of my head. I use TurboTax and cross my fingers every year.

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@lavikinga: Huh. Well I'll be a monkey's uncle....

...before I pay that tax! LOL!

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@darkinc: Um your green square tells me you bought at least 25 items from Woot. Last I checked Woot is online only.
@mlutz3: I think about it because of work. My employer wants the companies that I purchase from to collect the tax so my employer does not need to pay at the end of the year because it is easier for our company.
@lavikinga: I use Turbo Tax as well.

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@caffeine_dude: Last I checked my comment was in a friendly joking manor, please see the ";)" at the end.

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I live in Mississippi currently and have never been asked this >.> I use an professorial accountant so must not happen here. Just curious what state do you use?

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Nope...Santa Catarina does not require any taxes for goods bought online. Direct orders, however, made on a fiscal note, do. And they have to be paid before the goods are shipped to you.

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@firebirdude: Great for FLA until Amazon eventually builds a warehouse here - after that we'll have to knock them off the list.

The free ship plus the no sales tax beats 95% of the B&M's every time.

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@darkinc: As was my comment, I thought it was so obvious that it did not need the ;) same as was my comment about paying all my taxes.

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Saw it when I was doing my taxes. Did I pay it?

ha!

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@dravack: Just because your accountant doesn't ask doesn't mean he/she isn't just automatically answering "no." There are lots of things tax preparers will often just assume. Not the best practice but it would be very cumbersome to ask every question on the return (for both parties). Especially a question like this where it would result in a somewhat long discussion over what amount to include there and what the chances are of getting caught not putting an amount there.

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Since the State of Washington does not have an income tax, they do not really have a mechanism for collecting unpaid sales taxes from the general populace, but I think they are legally entitled to it. Believe me, though, they nail everyone with a business license for these fees. WA has a Business and Occupation tax that takes a percentage of one's entire gross receipts (regardless of loss or profit) and there are no deductions. In addition, they require the business to pay any uncollected sales tax for items purchased outside the state and used within the business. If caught cheating, the fines can be huge.

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I think it's a common misconception that internet purchases are/have been tax free. Definitely not so, you've always been responsible for reporting them yourself, if the merchant didn't collect for you, as far as I know. You crazy fraudsters!

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@gatzby: Your answer is correct. It won't be popular, but it is accurate.

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@jsimsace: I only shop at Amazon and Woot! They collect it for me!

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Nice answer. Job security and all that stuff. ;)

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@gatzby: I am not so sure, I remember when (think days of Newegg) when states were claiming they should receive tax on internet sales.

A little light reading about Iowa tax exemption for computers http://www.iowa.gov/tax/educate/78575.html .
Spoiler alert if it is for home use you pay taxes.

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@benyust2: No offense but I'll continue to trust my accountant. Seriously easier than doing it myself and always end up getting a return. Also if anything bad happens well guess what shes there to help. Much better than computer programs. Though I will also say computer programs aren't bad so not insulting people who use them either. Much cheaper than a professorial CPA.

Besides I dare the government to come and try to track down all my orders XD 99% of everything I buy comes from the web. Including food though most of that stuff I do have to pay sales tax on.

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@caffeine_dude: beauty of Florida (i assume I am to lazy to look up) I use to live there ages and ages ago and go back to visit time to time. But yeah everything is taxed in Mississippi. -.-

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@kbsig106 and @firebirdude: The Florida legislature, which is in the first two weeks of its two-month session, will be considering a bill to require Amazon to collect sales tax from Florida purchasers and remit it to the state.

If you live in Florida, you might want to take a few minutes to call your state senator and state representative.

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just about every state with a sales tax and income tax do this. If you knowingly don't pay, it's a crime. I've never paid it. screw the state.

What I find amusing is that a few people I know who are big on the "1% need to pay their fair share" thing are themselves tax cheats who are not paying the use tax. Hypocrites bug the hell outta me.

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@magic cave: Following it, this time the bill made it out of committee. Sucks if it passes.

If it doesn't and Amazon were to build a warehouse here - wouldn't they have to collect at that point? I've bought in state from ebay and had to pay sales tax.

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@kbsig106: Good for you! Yes, if Amazon has a physical presence in the state, they'll have to charge/collect sales tax.

I'd still shop with them, though, as their prices tend to be less than what I pay in a B&M store, and I have some mobility issues which makes shopping in stores a tad difficult.