Minnesota Sales and Use Tax

[thetat]

My wife is a pet groomer and we both pet sit in our home. Customers pay for our service only, as we do not sell any products at all to anyone. 

We pay income tax on all of our household income.

Do we have to pay the state sales and use tax on our business income? 

[PaulaM · Accepted solution]

Yes, you do. Below are two sources that indicate that you do need to pay state sales and use taxes on your grooming and pet sitting business income.

Minnesota Sales and Use Tax Business Guide - Lists taxable goods and services are subject to the tax.

Taxable Services in Minnesota - Lists pet grooming, boarding and care services.

[thetat]

Hi PaulaM,

I’m doing Turbo Tax for my small business, and I noticed that sales taxes are deductible. Can I deduct past years since I just learned this?

Thank you,

thetat

[CatinaT1]

No. You can only deduct expenses paid during the tax year.

You can amend your prior year returns to deduct this if you wish.

If you want to make changes or add a document to a tax return that has already been submitted, you should follow these guidelines. 

• You must first wait until the initial return is completely processed. 
• You will have to use the same TurboTax account that you used for the original tax return. 
• Once you begin your amendment, you'll see your original return.  
• The refund calculator will start new at $0 and only reflect the changes in the refund or tax due 
• Only make changes to the areas of your return that need amending. 
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment 

Select your product below and follow the instructions. 

Amend TurboTax Online 

Amend TurboTax CD/Download 

[thetat]

Is the sales tax I pay for supplies for my small business deductible? 

Is the amount I pay to Minnesota Sales and Use Tax deductible?

Thank you, 

thetat

[LeticiaF1]

1. Yes, the sales tax you pay for business supplies is deductible.  
2. Regarding the amount you paid for Minnesota Sales and Use tax, if it is included in your total sales, then yes it can be deductible. 

@thetat