When I was on PAYE in the UK, I didn't usually have to fill in any tax return.
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8 years ago
Well OT - The apprentice has feally f****d it up this time
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8 years ago
I find the your use of the phrase 'deduct tax at source' to be puzzling in this context. Amazon does not _deduct_ sales tax - it is _added_ to the price of the item sold. For example, in a 7% tax sales tax jurisdiction, an item listed at $10.00 will be invoiced at $10.70.
Tax forms for most states with a sales tax, include a section for sales and use tax, on the yearly return form.
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8 years ago
The US Supreme Court has ruled on multiple occasions that a state can force a retailer to collect sales tax *only if that retailer has a physical presence in that state.* If there's no physical presence in a state, then the state can't require a retailer to pay taxes,
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Which is exactly what I said. Amazon customers in Washington State won't pay sales tax as that will be paid "at source" by Amazon. And will be invoiced accordingly
For all other States, the Supreme Court has ruled there is no obligation on Amazon, to do anything. In those cases its the sole responsibility of the buyer to declare any purchases which are liable for sales tax.
michael adams
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8 years ago
The US Supreme Court has ruled on multiple occasions that a state can force a retailer to collect sales tax *only if that retailer has a physical presence in that state.* If there's no physical presence in a state, then the state can't require a retailer to pay taxes,
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Which is exactly what I said. Amazon customers in Washington State won't pay sales tax as that will be paid "at source" by Amazon. And will be invoiced accordingly
For all other States, the Supreme Court has ruled there is no obligation on Amazon, to do anything. In those cases its the sole responsibility of the buyer to declare any purchases which are liable for sales tax.
michael adams
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8 years ago
One of the bizarre features of US tax returns is the government isn't allowed to provide a decent online version (*). This is at the behest of the companies selling tax return software - corporate lobbying at its finest.
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(they do appear to have one for people whose income is < 62K$)
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8 years ago
I was a free lance for some 15 years. My accountant never once asked for receipts etc, and merely claimed allowances he knew the IR would 'rubber stamp' They seemed quite generous to me after being on PAYE, so I was happy to do as he advised.
And it was also clear to me that being self employed allowed one to claim for things you couldn't when on PAYE. Even when there was apparently no difference - at least to me.
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8 years ago
Yes. This is true. But I still question your use of the word 'deducted'!
Re your comment upthread - "However for out of State sales to places like NY buyers were supposed to voluntarily declare the sales tax and pay it - not sure of the mechanism", I was simply describing the 'mechanism' by which the sales tax is remitted to the state involved.
And I find your statement above 'Amazon customers in Washington State won't pay sales tax' rather odd. They don't include that sales tax on their income tax return, but they _do_ pay it - to Amazon, who then remit it to the state. Unlike VAT in the UK where the tax is included in the posted price, sales tax in the US is generally added on to the stated retail price, which can be a surprise to foreigners who don't understand why they're being charged more than the posted price.
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8 years ago
Yes, this is true.
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8 years ago
My original information was based on the 2013 edition of "The Everything Store". Where Washington was the only such state. Apparently since that time, presumably as a result of pressure of various kinds, Amazon now collects sales taxes on behalf of a growing number of States. The latest being Colorado as of February 2106.
michael adams
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8 years ago
In message , "Dave Plowman (News)" writes
I'm looking forward to that day, but with reservations. My tax affairs will be simplified, but a lot of general expenses will no longer be tax deductible :-(
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8 years ago
Indeed, if there are none to be given, they will not get one - however, having a dependent child will push them to the top of the list to get one when one becomes free ... leaving others that have been on the list for years one step further down.
SteveW
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8 years ago
Just my point. Worrying about matters such as that they might not get one because none are available is typical Dave counting angels on pinheads. Perhaps he's a lawyer. He's certainly heavily into things that are trivially unimportant.
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8 years ago
Well, if you're not going to house the mother and child, the option is to put the child in care and let the mother fend for herself. Very cost effictive, that one. As long as *you* are paying for it.