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I made out of state purchases and was charged taxes what box do i check? i dont know the percentage of tax charged but i did pay taxes on my purchases.

what box do i check if i made out of state taxed pruchases?
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3 Replies
rjs
Level 15
Level 15

I made out of state purchases and was charged taxes what box do i check? i dont know the percentage of tax charged but i did pay taxes on my purchases.

Are you asking about the itemized deduction for state and local sales tax on your federal tax return, or are you asking about reporting out-of-state purchases on your state tax return? If you're asking about the state tax return, what state is it? Every state is different.


What boxes are you being asked to check?

 

I made out of state purchases and was charged taxes what box do i check? i dont know the percentage of tax charged but i did pay taxes on my purchases.

We don't know what state you are working on so we don't know how the question is worded.

 

In general, you are supposed to pay sales tax (or use tax) in your state for something that you buy to use in your state, even if you buy it out of state.   It could even be argued that you should pay use tax in your home state for everything and then get a sales tax refund from the state where you bought the item, but I don't know of any state that actually requires this.  What the state does want, is if you bought something tax-free out of state, you should pay use tax in-state.  So they have added a line on the income tax form where you can voluntarily pay state sales/use tax for any items you bought tax-free out of state.

 

So, if you are pretty sure that all your catalog and online sales were taxed, then you can answer that you do not have any tax-free sales to report.  If you think you probably did buy some stuff tax-free online, then you can answer yes, you had tax-free sales.  In that case, depending on the state, they might charge you a fixed amount based on your income, as a rough guess of what you might owe.  Or, some states might allow you to declare the actual amount of your tax-free purchases.   

TomD8
Level 15

I made out of state purchases and was charged taxes what box do i check? i dont know the percentage of tax charged but i did pay taxes on my purchases.

"what box do i check if i made out of state taxed pruchases?"

 

If you're deducting state sales taxes on your federal return, then you check the box on Line 5a of your Schedule A.

https://www.irs.gov/pub/irs-pdf/f1040sa.pdf

 

Your federal return does not ask about in-state vs out-of-state purchases.

 

Your home state may charge a "use tax" if you bought items out of state and paid no sales tax on them.  Since you say you did pay sales tax on your out-of-state purchases, you probably owe no use tax.  However, if the sales tax rate you paid in the non-resident state is lower than your home state's sales tax rate, some states may charge a use tax on the difference.

 

In order to tell you what boxes (if any) might need to be checked on your state tax return, we'd have to know the name of your resident state.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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