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lulu
New Member

Does turbo tax file state sale tax for misc. items purchased on internet but not taxed when purchased? Colorado now requires paying state taxes via DR104US tax form.

I can't deduct the taxes as identified in the "questions like yours.".  I need to pay them.

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maglib
Level 10

Does turbo tax file state sale tax for misc. items purchased on internet but not taxed when purchased? Colorado now requires paying state taxes via DR104US tax form.

To visit the Use Tax section of the Colorado return in order to enter any applicable amounts, click Edit beside Other Situations.  This will open a screen titled, “A few things before we wrap up your state taxes.”  Use Tax is the first item on the list.  Click Start or Revisit to fill in your information. 

 The customer must file a use tax return and pay the tax if the goods or services were purchased for use in your resident state and if any tax paid to another State is less than your state tax rate.

The Colorado Use Tax applies when a Colorado resident makes a purchase of goods online, via telephone or via catalog ordering services from an out-of-state seller, and that seller does NOT charge Colorado sales tax on the purchase. So yes, it would apply to purchases from online sellers like Amazon.com or Steam.com, if they do not charge a Colorado sales tax on the purchase.

To be compliant, the Colorado resident purchaser must report and pay use tax to the State of Colorado on the purchase.

You will need to review your online, telephone or catalog purchases from out-of-state sellers to verify whether the Colorado sales tax was charged, and if not, pay the sales tax on that item.  Any food you purchase is likely not taxable, but clothing, electronics, appliances or other tangible property would be taxable.

For more information, please see the following list of FAQs from the Colorado Department of Revenue, on the Colorado Use Tax:

https://www.colorado.gov/pacific/tax/consumer-use-tax-quick-answers

For example: Suppose that you purchased a $1,000 refrigerator on October 1, 1991 in Massachusetts, where the tax rate is 5%, and you paid a $50 Massachusetts tax.  If that refrigerator was purchased for use in Connecticut and CT was your resident state, then a Connecticut use tax is owed.  The Connecticut tax of $60 is reduced to $10, after allowance of a $50 credit.  If no Massachusetts tax is paid, the Connecticut tax is $60.  

This is the way the rule is written, now reporting it and the paperwork is an entirely impossible task.... Most just estimate or only pay for large ticket items such as cars...
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