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New Member
posted Apr 16, 2022 12:53:26 PM

Why did I get charged sales tax(MA) on my Turbo tax filing? Turbo Tax is a service (services rarely are taxed) and I received an electronic, non-physical document...

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2 Replies
Level 4
Apr 16, 2022 1:30:53 PM

TurboTax is not a service, it's a product.  You are purchasing software to prepare your return and not a preparation "service".  

New Member
Apr 16, 2022 3:09:44 PM

I didn't purchase any software products.  They are selling "Federal" filings and "State" filings.  https://www.mass.gov/regulations/830-CMR-64h13-computer-industry-services-and-products#:~:text=Sales%20of%20custom%20software%2C%20personal,Massachusetts%20sales%20and%20use%20taxes - Section 9 & 14.  TurboTax is no different than the examples given; I'm not receiving a "printed" report or diskettes, so there should not have been sales taxes charged.  In section 14 - example 2, we used the software for free, payment applied to the federal or state tax reports being submitted to the IRS or state government agency.  Unlike Ann in that same example (14-example 2) I didn't have to pay money to self prepare my taxes, the software was free to use all the way until filing.