Did you do your TAXES?

[Liz]

On the NJ tax it has a line that says

"Use Tax Due on Out-of-State Purchases"

I'm afraid to ask, but what is that?

Liz

When I did my own simple taxes, I loved TurboTax. It was actually fun to do taxes then. And it walks you right through everything.

[opus]

Whenever you purchase taxable items or services for use in New Jersey and the seller does not collect the appropriate sales tax, you are required to pay use tax to New Jersey. For example, if you purchase taxable merchandise from a mail order house and they don’t charge New Jersey sales tax, it does not mean that tax is not due; it means that the mail order house is not authorized to collect New Jersey sales tax. You, the purchaser, must pay 6% use tax directly to the Division of Taxation.




If you make a purchase in another state which has a lower sales tax rate than New Jersey, use tax is due at the rate of 6%. If, however, that state has sales tax reciprocity with New Jersey, a credit is allowed for the sales tax paid to that state.


Use tax can be reported and paid on several different forms. Individual taxpayers may report and pay any use tax due when filing their New Jersey Resident Income Tax Return, Form NJ-1040. Businesses who file sales and use tax returns with the Division report and pay use tax on Forms ST-50 and ST-51. The Use Tax Remittance, Form ST-18, is also available to report and pay use tax.


To order the Use Tax Remittance, Form ST-18, or other tax forms.


For more information on use tax, see our publication ANJ-7, Use Tax in New Jersey.


Updated: Thursday, 02/27/2003

http://www.state.nj.us/treasury/taxa....htm~mainFrame

[Asylum Steve]

Kelly,

Wow, you sound so serious. Ok, I realize you were quoting from a tax publication, but you make it sound like someone would actually DO that: pay NJ (or any state for that matter - Florida has a similar law) sales tax on stuff bought through mail order or over the net.

In my case, not bloody likely... ;)

My brother and I call this a PHANTOM TAX, as in something that exists in a State Revenuer's convoluted little mind, but not in reality.

As there is no way to realistically enforce this type of law, it is pretty much voluntary, and as my brother (who was in the Navy) told me. "never volunteer for anything..."

[almo]

I am daddy's 'lil tax break, so I didn't have to file this year. I'm worth $3,500

[Liz]

Kelly - I won't drive you crazy, I promise this is the last question, but I'm intrigued by this - as I never thought of it before. I don't remember seeing that specific line prior to this year.

How does this work with the stores? Many people buy from out of state just so they don't have to pay tax - and they make that clear all over the internet. For example - most NY (and of course other states) larger photography stores ship all over the US. They don't charge tax except if you purchase it at the store - and take it with you, regardless of where you came from.

Do these stores report these transactions to the IRS? What is their responsibility? Any?

And we are supposed to keep a record of everything we purchase out of state - and at the end of the year, fill in the total for all of these purchases on the state tax form?

Liz

Whenever you purchase taxable items or services for use in New Jersey and the seller does not collect the appropriate sales tax, you are required to pay use tax to New Jersey. For example, if you purchase taxable merchandise from a mail order house and they don’t charge New Jersey sales tax, it does not mean that tax is not due; it means that the mail order house is not authorized to collect New Jersey sales tax. You, the purchaser, must pay 6% use tax directly to the Division of Taxation.




If you make a purchase in another state which has a lower sales tax rate than New Jersey, use tax is due at the rate of 6%. If, however, that state has sales tax reciprocity with New Jersey, a credit is allowed for the sales tax paid to that state.


Use tax can be reported and paid on several different forms. Individual taxpayers may report and pay any use tax due when filing their New Jersey Resident Income Tax Return, Form NJ-1040. Businesses who file sales and use tax returns with the Division report and pay use tax on Forms ST-50 and ST-51. The Use Tax Remittance, Form ST-18, is also available to report and pay use tax.


To order the Use Tax Remittance, Form ST-18, or other tax forms.


For more information on use tax, see our publication ANJ-7, Use Tax in New Jersey.


Updated: Thursday, 02/27/2003

http://www.state.nj.us/treasury/taxa....htm~mainFrame

[opus]

BAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA, I guess they really *did* simplify the language of tax instructions! Made it sound like I was talking!

I don't know any more than you. I just googled.



I'll try to find the answer for you but it might not be today.

[opus]

OK I asked someone, and they think that no, the store does not report it to the IRS, but if they are ever audited, the state has the records.

[another view]

but if they are ever audited, the state has the records.

Mmm... That will be a scary day...

[Liz]

Thank you.........sorry for all the complicated questions. I didn't mean for you to look it up - as I would have done that after getting the link. But I was debating whether to do the form over again claiming the Rebel XT and had the envelop ready to mail. Thanks!

Guess what! After all that worrying - I almost did the form over to include the $900 for the XT - then I realized. I bought it in 2005! YIKES.........
I have a year.

Now we can all enjoy the nice beautiful sunny warm weekend.......if our taxes are done.

Liz

OK I asked someone, and they think that no, the store does not report it to the IRS, but if they are ever audited, the state has the records.

Liz

[another view]

"Use Tax Due on Out-of-State Purchases"

Can you say "Fifth Amendment"? ;)

I think most states, if not all, have this. What it's saying is that when I buy something (as an Illinois resident) at B&H (in NYC), they don't collect sales tax because they don't have a storefront, warehouse, etc anywhere in Illinois. It's my responsibility to pay the 7-1/4% sales tax (local rate) to the government for that purchase. If I buy from a place that has a presence here in Illinois - say Calumet Photo - then they charge me the tax so it's already paid.

That's how it's supposed to work. The reality? See the first line of my post...

Same thing is true with cars (at least here) but much more controllable because a car has to be registered. I could go to Wisconsin and buy a car, but would have to pay the Illinois sales tax (based on what my local tax rate is) when I register it. Can't get around it this way.

[paulnj]

I am with ANOTHER VIEW.... skip that line ;)

I bought well over $12000 on the net this years, last year and plenty of years prior. I can seriously add up $20k in FILM purchases from B&H alone.

I NEVER give NJ tax on mail order/ internet purchases , nor will I EVER.

As for my taxes.. TELEFILED my fed tax 3 weeks ago and mailed my state yesterday.

BTW ... TURBO TAX did Michelle's taxes(got her more than H&R BLOCK and her accountant EVER did) and my friend uses it every year(his portfolio is HUGE!!!!, as is his wife's pention) with a few tips from his daughter who is a CPA. TURBO TAX, though I have never used it, is said to be BETTER than most CPA's from what I have been told.

[adina]

Oh please, ours were done on Feb. 1st

The big question is....What did you spend your taxes on? (assuming you got some back )

We went to Chicago for a week, spent some on the house, and then some misc. stuff.

[tijean]

Adina>> Good question. I did mine back in January because I knew they'd be easy and I would be getting money back. Too bad the money I got back was spent on car repairs and insurance!

I saw the line about items purchased out of state (that's how it's worded in the TaxCut software). I'm like hmmm... no

One thing that did peak my interest though was the section about hobby deductions. I really need to do some research on that one for next year! Though the plan *giggle* is to not spend much on photography this year, since I have my *istDS and 31mm Limited now.

[Liz]

Well, even though I waited to the last minute ;) I had already spent $300 of the $600 on photo equipment - and the rest went toward the XT - or will when I pay off the credit card.

My income tax return is my photo equipment allowance each year. I get about the same amount back, so know what to expect. Sometimes I end up charging the item about a month in advance and pay it off before I have to pay interest. That's what I did this year. So, I always look forward to tax time.

Liz

Oh please, ours were done on Feb. 1st

The big question is....What did you spend your taxes on? (assuming you got some back )

We went to Chicago for a week, spent some on the house, and then some misc. stuff.