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Tax Tip of the Week | No. 363 | Did You Accidentally Forget to Pay This Tax? July 13, 2016

Posted by bradstreetblogger in : General, Tax Planning Tips, Tax Preparation, Tax Tip, Taxes , trackback

Tax Tip of the Week | July 13, 2016 | No. 363 | Did You Accidentally Forget to Pay This Tax?

Remember that purchase you made online — the one you didn’t have to pay sales tax on? Guess what? In most cases, you are supposed to pay the tax yourself, at the same rate as your state’s sales tax. These consumer-assessed taxes are called “use” taxes, and they typically apply when you or your business make a purchase from an out-of-state seller that is not required to collect sales tax in your state. If the seller does not collect the tax from you, and the purchase is otherwise taxable, you’re responsible for remitting use tax to the state. The idea is to keep in-state businesses from suffering a competitive disadvantage against out-of-state rivals.

In Ohio, the “use” tax is reported on Line 12 of the IT 1040 return.

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Rick Prewitt – the guy behind TTW

…until next week.


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