Here below the information I shared in another thread on this same topic:
I found this thread after calling TurboTax about this very issue. I was shocked to see a "sales tax" for Massachusetts residents using TurboTax online despite the fact that we do not have taxes for professional (accounting) services in our state.
The agent I spoke with informed me the policy is motivated by recent Massachusetts legislation which requires online retailers to charge customers the same sales taxes as they would be charged for brick and mortar stores.
However, we are not charged taxes for accounting services--even if they are provided by brick and mortar retailers--because most professional services (including accounting) are exempt from tax according to Massachusetts laws and regulations (see MASS. GEN. LAWS ch. 64H, §§ 1-6 and the MASS. CODE REGS. 64H (830)). Unless a tangible item is received by the customer, which is not the case for TurboTax online, the services are exempt from sales tax. The rules on this are very clear.
You can see the exemption for ‘personal or professional services’ on the official Commonwealth of Massachusetts' website here: https://www.mass.gov/guides/sales-and-use-tax#-tax-exempt-items-&-sales-
You can also look for ‘accounting and bookkeeping’ at Table 1 and the paragraph labeled ‘Massachusetts’ here: https://www.cga.ct.gov/2019/rpt/pdf/2019-R-0104.pdf
