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Online tax questions

I bought some solar equipment from Texas few months ago.  Since Texas does not impose any state tax, do  I need to report and pay taxes for 2022 tax return?

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5 Replies

Online tax questions

Short answer is NO  since TX doesn't have a state  income tax to file.   And any sales taxes would have been paid at the time of the purchase if required .

Online tax questions

if you do not live in Texas the purchase may be subject to sales tax in your resident state. 

Online tax questions

Most states that have a sales tax also have a use tax.  You are supposed to pay the use tax on items you purchase out of state for use in-state.   In the past, use tax was only paid voluntarily in most cases (although, if you bought a vehicle out of state, the state would make you pay the use tax when you registered it).  Today, many states put the use tax on your state income tax return and ask you to voluntarily disclose the cost of items you bought out of state that you did not pay sales tax on.  If you did not pay sales tax on these online purchases, you would be required to report the amount on your state tax return to pay the use tax. 

Online tax questions

Thanks.  I forgot to mention that I live in California and bought the stuffs online from taxes. I guess that I have to pay use tax then.  That means California Franchise Board would levy that during on filing my 2022 tax return?

Online tax questions


@SLYKTAX wrote:

Thanks.  I forgot to mention that I live in California and bought the stuffs online from taxes. I guess that I have to pay use tax then.  That means California Franchise Board would levy that during on filing my 2022 tax return?


You can read more about California's use tax here.

https://www.cdtfa.ca.gov/taxes-and-fees/use-tax.htm

 

You have the option of making a voluntary payment at any time on their web site.  I also suspect that you will be asked about untaxed out of state purchases on your state income tax return, but I am not a CA resident and I haven't reviewed the form.   If you have untaxed out of state purchases, you can declare them on your income tax return and the use tax will be added to your income tax. 

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