Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 7:53:53 AM

I bought things online in 2017 and reported them to pay "use tax" in Indiana. I also bought goods via Paypal invoices - do those need to be reported, too?

0 3 560
1 Best answer
Employee Tax Expert
Jun 6, 2019 7:53:55 AM

Yes, the goods purchased through PayPal would be included in the total of your online purchases for use tax. But only if you paid sales tax that was less then 7%.

From Indiana link below.

'Paid sales tax of seven percent or more to the other state, you do not owe use tax to Indiana. Paid sales tax of less than seven percent to the other state, your Indiana use tax will be the difference between the Indiana seven percent use tax and the amount you paid to the other state'.

https://www.in.gov/dor/4006.htm

3 Replies
Employee Tax Expert
Jun 6, 2019 7:53:55 AM

Yes, the goods purchased through PayPal would be included in the total of your online purchases for use tax. But only if you paid sales tax that was less then 7%.

From Indiana link below.

'Paid sales tax of seven percent or more to the other state, you do not owe use tax to Indiana. Paid sales tax of less than seven percent to the other state, your Indiana use tax will be the difference between the Indiana seven percent use tax and the amount you paid to the other state'.

https://www.in.gov/dor/4006.htm

New Member
Jun 6, 2019 7:53:56 AM

Thanks for your help!

Employee Tax Expert
Jun 6, 2019 7:53:57 AM

You are welcome 🙂