Should I collect taxes if I sell books (in bulk) to customers in or out of state? If yes, what tax rate should I use on sales of my book?

[bill-pokluda]

In addition to taxing book purchase / sale, do I have to tax fulfillment costs charged to the customer like shipping and handling?

[VolvoGirl]

That is a state sales tax question.   You need to ask your state.   Not about income tax.

[bill-pokluda]

Thanks Perhaps wrong question.  On my tax return, do I need to report sales tax collected from customers who purchase my books?  How is sales tax treated on my return? thank you.

[Mike9241]

since your sales deposits probably include the sales tax I would include them in the gross revenue you report. then you get a tax deduction for the sales tax you remitted to the state. many states, give a discount on the sales tax return - that's taxable income to you and but if you report as I suggest this is taken care of by deducting only what you actually remitted to the state which would be less than collected. 

the other way is to report sales net of the sales tax but then you would need to report on the same schedule your report your business the sales tax discount as other income.

[Hal_Al]

Q. On my tax return, do I need to report sales tax collected from customers who purchase my books?

A. No, since it is remitted to the state, your are essentially just "passing it through".

But, it's optional.  You may report it as income and then deduct it as an expense. Many Schedule C users find this way easier.