Aliexpress Purchase

[SLYKTAX]

Do I need to report purchase from Aliexpress? 

The price I paid includes taxes charged. But I don't know where those taxes go? Is it China or US.

[DianeW777]

it depends. If you are referring to paying sales tax, then it likely goes to China and not the US. However, this would be a sales tax that may need to be included for your state return. Most states require you include sales tax for purchases where none was charged. 

As far as your US federal return, unless you are using it in your business or you sold your purchased products, there is nothing to report.

Please update with additional details if you have more questions and we will help.

[SLYKTAX]

The purchase I made shows the price and tax like the following:

If I need to report: should I include the price with tax?

[MonikaK1]

Sales taxes are typically charged by online vendors based on the state of residence of the purchaser. 

If you purchased this item for business and were not able to buy the item wholesale, you can report the full price you paid as a business expense.

If you live in a state that has no income tax, and you itemize your deductions, you can either add up all of your sales taxes paid, or use the tool in TurboTax or at the IRS website to calculate an allowable amount for sales tax based on your income and locality.

@SLYKTAX 

[SLYKTAX]

Sir,

Maybe you mistaken my intent of asking.

I am not trying to add up the sale taxes I paid for itemized deduction.  I am just afraid CA State wants to catch me for not paying sale taxes.

Based on what you said:

Sales taxes are typically charged by online vendors based on the state of residence of the purchaser. 

So the sale taxes on AliExpress purchase is for California, not China?

So, I can SKIP the out of state purchase questions

Correct?

[SharonD007]

Are you referring to the CA Use tax that's reported on Form 540? Based on the information on the CA Dept of Tax and Fee Administration, use tax does apply to foreign purchases, so you can enter your use tax on the CA return. "Use tax also applies to purchases of tangible personal property made outside the United States and brought into, or shipped into California for storage, use, or other consumption." If your purchase would have been taxed if you purchased the item in CA, it's subject to the Use tax.

Refer to the CA Dept of Tax and Fee Administration website   California Use Tax, Good for You. Good for California and California's Use Tax For Foreign Purchases for more information.

To calculate the use tax owed, please see the For Personal Use or For Business Use tabs. You can make the payments on the website or include the payment on your CA tax return.

[SLYKTAX]

Thanks Sharon.

I just have no idea that I bought things from AlIEXPRESS only in the last 2 years included taxes charged to the items goes where.  If it is for California, then I already paid my use sale tax.  Then I don't have to report anything on my California TAX RETURN>

If it is collected for China, then I may have to pay California Sale tax or get fine for not paying. And I see no reason China collects the sale tax!

Just now, I went to Chat with an AliExpress agent, this is what she said:

As required by the relevant Sales Tax Laws in the US, the marketplace facilitator is required to collect Sales Tax on foreign sales into some states and remit such tax to the relevant state tax authorities. The Sales Tax includes the State and Local components of the tax, and is normally taxed at the applicable tax rates based on the destination of the shipment.

 That means I have paid the sale tax to the stuff I bought.