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New Member
posted Mar 12, 2022 9:22:44 PM

If I made online purchases but they all or most of them have tax included in on the final purchase price, do I need to report them in my taxes?

This is in terms of use tax. The online purchases I made are:

Grocery shopping
Amazon, Etsy, Sweetwater etc. purchases (estimate tax included)
Boost Mobile bill (mostly paid online, once or twice in store)

0 5 1702
5 Replies
Expert Alumni
Mar 13, 2022 5:29:29 AM

  Are you asking because you have a business?? Any sales tax or use tax is an expense. It is usually included in the price of your inventory item.

New Member
Mar 13, 2022 5:33:09 AM

No. I don't have a business.

Expert Alumni
Mar 13, 2022 6:21:32 AM

Are you trying to take the sales tax deduction on Schedule A? You can just take the amount the program calculates based on your income. Otherwise, you would have to take the sales tax from every receipt.

 

Use tax is not deductible.

 

Use tax is assessed upon tangible personal property and taxable services purchased by a resident or entity doing business in the taxing state upon the use, storage, enjoyment or consumption of the good or service, regardless of origin of the purchase. Use taxes are designed to discourage the purchase of products that are not subject to the sales tax within a taxing jurisdiction.

 

Use tax may be applied to purchases from out-of-state vendors that are not required to collect tax on their sales within the state. The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction.The use tax is typically assessed at the same rate as the sales tax that would have been owed, and generally the taxability of the good or service does not vary. However, there are some instances where the sales tax rate and the use tax rate vary.

 

For example, a resident of Massachusetts, with a 6.25% "sales and use tax" on certain goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other consumption in Massachusetts. Under New Hampshire law, the New Hampshire vendor collects no sales taxes on the goods, but the Massachusetts purchaser/user must still pay 6.25% of the sales price directly to the Department of Revenue in Massachusetts as a use tax. 

 

New Member
Mar 13, 2022 6:33:59 AM

I was a West Virginia resident in 2021. Any purchase I made online that includes sales tax in the total price for a complete transaction I wouldn't need to report it? Since it's taxed? I'm not sure I truly understand. I apologize. 

Expert Alumni
Mar 13, 2022 6:56:20 AM

No, unless you own a business where you would deduct it or you itemize and are taking a sales tax deduction on Schedule A instate of state income tax, you don't do anything for Federal. Unless WV has some special way of treating it, if neither of those two situations applies, you don't do anything with it.