Am I supposed to charge sales tax on my online store?
I have an online t-shirt company and we're going to launch soon. I'm working on my price point and I'm a bit confused about internet sales tax. I know that usually you're not supposed to pay sales taxes on online items but there is that Marketplace Fairness Act that recently passed. So am I supposed to charge sales taxes on my t-shirts? By the way, I'm located in New York and I know that taxes are dependent on which state you're in
- Bostonian In MOLv 78 years agoFavorite Answer
Assuming that you have no physical presence in any other state, you must collect and remit NY sales taxes on all goods delivered within NY.
The MFA is pending legislation only. The Senate passed it but the House has not even scheduled debate as of yet. Even if it is passed and signed into law -- by no means a certainty -- it may be years before it can be implemented in its current version given the requirement that software to handle the tax must be provided to businesses at no cost.
- ErikaLv 45 years ago
You have to add Florida sales tax to any order purchased by, or shipped to, a FL resident, otherwise no.
- ?Lv 78 years ago
Required by the local taxing authority in your local area for you to contact your local taxing authority and let them show you how to and explain to you that you do have to be a registered sales and use tax collector for them and what forms and schedule that you will have to use to correctly send to them the amount of sales and use taxes that you did collect for them during each period of time as you are required to do OK.
Federal taxes social security, medicare taxes plus your federal income tax amount that you will owe and need to make the quarterly estimated taxes during each tax year for this purpose and time in your life.
Age and being a minor has nothing to do with the tax rules when it does come down to the taxpayers having to fill out CORRECTLY and COMPLETELY each taxpayers own 1040 federal income tax return and the state does NOT have anything to do with the federal taxes that would be due on your taxable NET PROFIT from your schedule C and your SE during each tax filing season after the past tax year OK.
Self employed independent contractor using your daily written receipt book records to report your gross income on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose.
SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount.
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- troLv 78 years ago
you can't charge sales tax if you are not registered with the state sales tax agency you are selling your products--sales tax is not your money, it belongs to the state and you are merely a conduit for collecting it
unless you register with each state you sell your products you are not responsible to collect
there is no national sales tax, it is entirely an individual state action--some states actually do not have sales tax