View Full Version : Do you report your untaxed internet purchases?

February 9th, 2018, 12:04 AM
I've been working on taxes most of the afternoon. Our tax preparer told us a couple yrs. ago that any internet purchases that did not have sales tax added needed to be reported on our income taxes. It took a long time today to go back through my orders to determine what wasn't taxed. M* never adds sales tax. Many of the fabric businesses don't. I found some Amazon orders that didn't. I also ordered some quilting rulers that didn't have the tax added. So, do you take the time to gather that data & report it on your taxes? Fortunately, it's only state sales tax, not city, but still it adds up.

My income tax preparer stated that CDOR (I don't know what that stands for) stated some folks will be receiving notice from on line vendors of the total of their untaxed purchases.

I was surprised as I went back through last year's M* orders how much fabric I'd ordered! Sigh. So many projects I have in mind that I haven't got to yet. Plus I ordered all those "Sand in My Shoes" fabrics from other stores. I didn't order the whole collection, but I ordered a lot.

I think I'm just about done with the taxes (woo hoo!) & can set up an appt. to get them done. I didn't file until March last yr. There was something on the news within the past week warning folks to file their taxes early this year to avoid hackers stealing your info. & refund.

February 9th, 2018, 12:30 AM
As to your question, I never have, since my internet purchases are not substantial. However, I think this is probably for your state taxes. I don't recall seeing this question when working on my federal taxes. (My state doesn't have an income tax.)

I would recommend that people file taxes as early as possible. This does help if someone is out there trying to use your identity to file a fraudulent return. (I've seen this happen before.) Hackers are pretty smart these days. Unfortunately, I am still waiting on some information that won't come in for a few weeks.

Caroline T.
February 9th, 2018, 01:19 AM
"CDOR" = Colorado Department of Revenue

February 9th, 2018, 01:45 AM
My husband is self employed and works from home so we have an accountant who does our taxes, business and personal, every year. I feel it is money well spent, about $350. He has never asked us for any info on internet sales. I am not worried about not reporting it. If I was audited I could probably manage pulling that info together but total internet purchases I would say amount to maybe $300 a year, so not too much. Amazon has a dist center in my state so they collect states taxes on purchases through them. I think it would cost the IRS a lot more to audit us than they would receive in legitimate under payments.

February 9th, 2018, 05:00 AM
It depends on your state. Here in California, we're supposed to report untaxed purchases that come to California. But if I send an untaxed Internet gift to my grandkids in another state, that's not reportable. Or if I'm visiting my daughter out of state, order something online, and don't bring it to California for three months, I don't have to report that, either. But anything I buy out of state that is taxed at less than the California rate, I'm supposed to pay the difference.

I do my best to report these things. Usually I see about an extra $50 in state taxes. I shop a lot online.

Star lover
February 9th, 2018, 07:56 AM
Our state has a formula to use if you haven't saved receipts.

February 9th, 2018, 08:58 AM
I live in Minnesota. We've had the same H & R Block gal do our taxes, both for the business and personal, for about 30 years. She's never asked for information about untaxed internet purchases. I assume it's different state by state.

Iris Girl
February 9th, 2018, 09:49 AM
We have had our taxes done by our financial advisor for last 15 years and before that and currently by a tax preparer. Neither has ever asked that question.

February 9th, 2018, 09:52 AM
If you live in Missouri your orders from M* are taxed. That pretty much gets me off the hook since I buy 99% of my supplies from M*.

February 9th, 2018, 12:52 PM
If you live in a state that has sales tax then your state has a use tax and you are required to report it if you file taxes.
NC does collect on out of state purchases. I've been using Turbo Tax for years & it asks me if I purchased out of state & didn't pay sales tax. It then asks if I saved the receipts. If I choose no it assesses a tax amount "based on what most people purchase online."

February 9th, 2018, 01:01 PM
Definitely a State tax issue. Thank goodness we have no state tax or I would be sunk!

February 9th, 2018, 01:30 PM
It's called a consumer use tax and it's supposed to be on the honor system, if a company, such as Amazon, isn't in the know on your state tax laws. My fiscally irresponsible state started implementing internet tax laws last year, for the greater good of Oklahoma, of course. We get taxed automatically on internet sales now. I'm not opposed to this concept; however, there is great debate on whether or not this law is legal, since in most cases, internet goods are being purchased out of state. In other words, is it lawful to pay Oklahoma sales tax, when the goods were purchased in Texas? Accordingly to the government of Oklahoma, yes. ��

February 12th, 2018, 02:16 PM
Hmmm. You have me thinking. We pay an accountant to do our taxes and it is worth every penny. My husband is also self-employed and files quarterly so the accountant is even more important. I don't remember him every mentioning anything about internet sales but I'll have to check with him. Or, maybe I don't want to??

February 12th, 2018, 05:47 PM
Funny i never noticed M* never charges me sales tax. I don't believe I'd go back and try to calculate it either.

February 13th, 2018, 08:57 AM
As if the tax laws were't confusing enough!

February 14th, 2018, 03:18 AM
This is one of those times when I realize how lucky I am to be married to a CPA. ;)

February 14th, 2018, 04:23 PM
Reading these posts makes me realize why so many folks are leaving Connecticut for places where there the tax burdens are less! :icon_rolleyes: