topic If you didn't pay sales tax on Web items costing < $110 each, TT subtracts money from refund. Non-business items <$110 each don't owe tax. Read NYS ST-140! TT has bug. in Get your taxes done using TurboTax

If you didn't pay sales tax on Web items costing < $110 each, TT subtracts money from refund. Non-business items <$110 each don't owe tax. Read NYS ST-140! TT has bug.

fixit2017z — Thu, 06 Jun 2019 16:12:46 GMT

You misread the form. First, the form is only used for NY...

Opus 17 — Thu, 06 Jun 2019 16:12:48 GMT

You misread the form.

First, the form is only used for NY residents who don't file a tax return. If you file a tax return, the use tax is reported on your tax return and there are no minimums.

Second, the $110 limit only applies to eligible clothing and footwear -- eligible clothing and footwear under $110 is subject to local sales tax but not state sales tax, so the effective rate is 3-4% instead of 7-8%. However the rate for all other items is the full sales tax rate.

Third, turbotax exactly follows the official instructions for the NYS-201 form. You can claim no untaxed purchases, or you can use the standard method, or you can do the exact calculation. The standard method uses a formula to estimate your taxes owed based on your income, at a rate of 0.0058% (which likely is some kind of estimate of the amount of untaxed purchases an average person makes as a percent of their income.) If you prefer to use the exact method, Turbotax does not perform the calculation and tells you to use form ST-140 yourself and then enter the result in the program.

My comment stated NYS which means New York State. I beli...

fixit2017z — Thu, 06 Jun 2019 16:12:48 GMT

My comment stated NYS which means New York State. I believe you are incorrect. Part 2 on ST-140 says to only list items >$110. I believe you misread the form. Turbo Tax has a bug in the NYS form.

If you allow Turbo Tax to use the standard method it dedu...

fixit2017z — Thu, 06 Jun 2019 16:12:50 GMT

If you allow Turbo Tax to use the standard method it deducts money from your refund, like I said Part 2 on ST-140 says to only list items $110 which means you only pay tax on items costing > $110.

1. The reason you only list clothing items over $110 in p...

Opus 17 — Thu, 06 Jun 2019 16:12:51 GMT

1. The reason you only list clothing items over $110 in part 2, is that you list clothing items under $110 in part 1 and calculate a lower tax based on the local rate only.  Nowhere does it say the $110 limit applies to anything else.

"List ALL other taxable items or services, including clothing and footwear each costing $110 or more on which no New York State or local tax was collected from you at the time of purchase"

2. Regardless, you only use form ST-140 if you don't want to use the standard method.  The standard method exactly follows the instructions for the tax form.  See page 26. <a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf">https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf</a>

If you have objections to the standard method, take them up with the DTF.  Turbotax must follow the state's instructions.

If you want to use the exact method, use your own copy of form ST-140, and keep it for your records to prove your calculations.  Turbotax does not support form ST-140 and does not do the calculation for you.

I will verify your answer with NYS. You could be more ta...

fixit2017z — Thu, 06 Jun 2019 16:12:53 GMT

I will verify your answer with NYS. You could be more tactful with your responses. I have been a long time Turbo Tax customer. Clothing and foot ware are exempt in those localities that provide the less-than-$110 exemption. Turbo Tax doesn't say in the program that they don't support ST-140 nor do they say how they are arriving out the amount that is being subtracted from a refund when you use the Turbo Tax method. Turbo Tax says they are using a table to determine the amount to subtract from the refund but it doesn't explain it any further. It should be made more clear to prevent this confusion.

If you select "Turbotax will calculate the tax" it could...

Opus 17 — Thu, 06 Jun 2019 16:12:54 GMT

If you select "Turbotax will calculate the tax" it could say, but doesn't "using the formula provided in the NYS IT-201 instructions (see link)." That's an enhancement that is worth requesting to be made, although I can't guarantee the programmers will place a priority on it.

If you want to calculate the number yourself, Turbotax tells you that you need form ST-140 and the instructions to form IT-201 and provides a link to the NYS tax home page.

On part 1 of page 2 of form ST-140 you list all clothing purchases costing less than $110 per item and enter the corresponding tax rate from the chart in the instructions. The chart does indeed indicate that some counties exempt clothing under $110 from local taxes as well, in which case you use zero as the tax rate. See page 4 here. <a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pdf/current_forms/st/st140i.pdf">https://www.tax.ny.gov/pdf/current_forms/st/st140i.pdf</a>

So if you follow ST-140 and the instructions you get the correct result.

The bottom line is that items under $110 are never completely exempt, as you seemed to indicate in your question and first comments, and Turbotax doesn't have a bug because it is following the official instructions from the IT-201 form.

OK, thank you for your help. When I called Turbo Tax and...

fixit2017z — Thu, 06 Jun 2019 16:12:56 GMT

OK, thank you for your help. When I called Turbo Tax and talked to customer support before posting my comments the Turbo Tax representative acknowledged that it was a bug.

topic If you didn't pay sales tax on Web items costing &lt; $110 each, TT subtracts money from refund. Non-business items &lt;$110 each don't owe tax. Read NYS ST-140! TT has bug. in Get your taxes done using TurboTax