Reporting internet cpap purchases on CA tax return

[sleepergal]

It's tax time in California and I'm working on my return. Once again, I am summarizing my internet purchases for which I paid no sales tax so that I can report them on my CA tax return and hand the sales tax over to the State of California (I'll resist the urge to comment on the lunacy of this requirement).

Now, my cpap.com purchases alone will give me a sales tax amount due of almost $100, no small sum in my tiny budget. So I'm hoping that I will be able to process this tax payment through my insurance and/or my flex plan account for reimbursement. If I had paid the sales tax for a storefront purchase in CA, it would have been on the original bill that I processed through the insurance company and it would have been paid, right? Or do the DMEs in California not charge sales tax on durable medical equipment?

Any advice or wisdom would be greatly appreciated.

[Goofproof]

It's simple if you sleep better by reporting it, and paying your greedy politications more "Fat of the Land", do it. I sleep just fine without reporting internet purchases, infact is a internet dealer wants to charge me tax on his end, I don't do business with the crooks. Jim

[xzombie]

I hope the state's not listening and I admire your your integrity but does anybody actually pay that?

[Offerocker]

It's tax time in California and I'm working on my return. Once again, I am summarizing my internet purchases for which I paid no sales tax so that I can report them on my CA tax return and hand the sales tax over to the State of California (I'll resist the urge to comment on the lunacy of this requirement).

Sleepergal: ANOTHER reason I left California! That's a new one.
Wouldn't your receipt from cpap.com suffice, as it would show no taxes paid?
Do you now have to pay taxes on 'out of state' purchases? Or can you be reimbursed for DME?

I won't go into the headache of our split-year return after moving to another state...they wanted a percentage of the entire year!
Your returns are worse than the Federal Return!
My sympathies to you.

Any advice or wisdom would be greatly appreciated.

Only 'advice' (certainly no wisdom!) would be to make that 2-hr phone call to the IRS and hope for the best.

[dataq1]

Not being a CA resident, I'm assuming that you mean the state's USE tax.
Practically every stae with a in-state sales tax also has a use tax, for products purchased outside of the stste (or from companies with no in-state office).
With few exceptions, it is so problematic for a state to police purchases made out of state that, although the tax is in the law, it is generally ignored by both the taxing authorities and the consumers.
In Pennsylvania, the strict application of the USE tax law would required that you pay the use tax on a sweater that you bought on vacation while in another state and returned to Pennsylvania with it. The question is: how can the state of Pennsylvania find out you bought a sweater out of state and how much effort can the state expend to collect the (say) 1.80 tax?
Rest well,

[Linda3032]

Maybe I'm not as honest as some people, but I wouldn't bother with declaring it on my tax return. If the state wants to get picky, determine the value of things I purchased online, and then come after me -- fine.

Does anyone believe that would happen? I don't think so.

[SleepySandy]

Does anyone believe that would happen?

It's not so much I think it would happen; it's that I know it could happen. I'm sure there's technology that would make it pretty easy to do.

But, I'm a ridiculous rule follower. We used to live on the border of SC and NC. When we bought furniture in NC they didn't charge sales tax because it was being delivered to SC. We declared those purchases. We also declared our internet purchases. I just worry too much about doing everything by the book. It drives my husband crazy.

At least I thought I was a rule follower. Until I read this:

In Pennsylvania, the strict application of the USE tax law would required that you pay the use tax on a sweater that you bought on vacation while in another state and returned to Pennsylvania with it.

This shocked me - I figured if I paid sales tax where I bought the sweater I was good. It made me wonder about my state (WA). These are the relevant facts for me with my comments in blue:

• Use tax is due if: goods are purchased in another state that does not have a sales tax or a state with a sales tax lower than Washington’s.
  
  You owe use tax when: the goods are first used in Washington. Okay. I'll just wear my new sweater before I return to Washington
  
  Credits When you bring goods into Washington that you purchased in another state or country, you can receive a credit for the sales tax or use tax you paid to another state, local government, or country by subtracting the amount of sales tax you paid from the amount you owe. However, you must have proof, such as an invoice or bill of sale, that the tax was paid in the other state. Are they KIDDING?!?! WHO does this?!?! WHO came up with this?!? The sales tax where I live is 8.8%. The tax in Idaho appears to be 6%. When I get home from shopping in Idaho I'm supposed to calculate the 2.8% difference and send it to Washington state? Puleez. The sales tax in Chicago is 9%. If I go shopping in Chicago, who's going to send me my 0.2% refund?
  
  Exemptions — Persons who are residents of another state and move to Washington are exempt from use tax on their household goods, personal effects, and motor vehicles if they acquired the property more than 90 days prior to moving to Washington. How very kind of them. I sure hope we didn't make any purchases 30 days before we moved out here.
  
  How do I pay use tax? Use tax is determined on the value of the goods when first used in Washington. Generally, this is the purchase price. However, a depreciated value may be determined if the goods are used outside the state for a lengthy time before use in Washington by the same person. But but but it said I only owe it if the goods are FIRST USED in Washington.

Gotta love the government.

[Guest]

Hi Sandy,
Yup, gotta love the gov'ment.
I'm afraid however you are parsing the words about "first use". (or maybe you realized that).
The use of "first used" means that the use tax is due as soon as you put the sweater to use (for the first time) while in Washington.
Congratulations, you don't owe any use tax on the sweater as long as you don't use it!
There are instances where these laws have been enforced, however the cases are very rare and usually involve large amounts of taxes due.
The tax "police" just don't have enough G-men to go out and round up all those sweater scoff-laws!
Have great xPAP night!

[snoregirl]

I don't know about CA but in NY we have the option of taking a standard use tax number based on income or an actual number where one is supposed to have documentation.

The standard number is really pretty low -- considering what I buy on the internet (I think it was $67) and is worth taking it (for me anyway) to reduce the chances of getting audited if I claimed nothing. I just don't believe our government believes that people buy nothing on the internet (or out of state for that matter as I believe the tax includes stuff bought out of state for use in NY) and might use zeros in that column as a reason to audit. Any IRS or CPA pappers want to comment on my belief? I just don't want that hassle of record collection and time wasted going to some meeting to be audited if I can avoid it....

I also wonder though if tax is really required on medical equipment since I don't remember NY tax being charged by my original Brick and Mortar DME when I got my first machiine, or some supplies I got through them.

[Goofproof]

I am going to make a addition to my previous answer, If you are going to use the purchase to reduce your Federal medical dedcuction or tax, you might want to pay the tax. Your are creating your own paper trail.

Out of State sales taxes, if the states get them set up the way they would like, you could buy that sweater in Calif, and drive home to New York, and have to pay Sales Tax on the sweater in every state you drive through. What's 12 more hands in your pocket, We're Americans, That's why our Hip Huggers are so low. Jim

[Jere]

The use tax usually comes into play when people go to a state where there is no sales tax (like Delaware) and buy something big - like a car or a boat - and pay no sale tax at time of the sale. However, the state you live in - say, Maryland - will hit you with the use tax when you go to register the car (or boat).

I would not worry about the little things.

[allend]

It's tax time in California and I'm working on my return. Once again, I am summarizing my internet purchases for which I paid no sales tax so that I can report them on my CA tax return and hand the sales tax over to the State of California (I'll resist the urge to comment on the lunacy of this requirement).

Sleeper, XPAP related purchases are exempt for sales and use tax in California, I just checked it. It's probably exempt in most states.

Allen

[Kiltie_Bari]

....Sleeper, XPAP related purchases are exempt for sales and use tax in California, I just checked it. It's probably exempt in most states.

Allen

Not in Illinois, at least not according to the claim BCBS just paid for my DME supplies. Sales tax was billed. And BCBS didn't cover it.

[Patrick A]

[quote="sleepergal"]It's tax time in California and I'm working on my return. Once again, I am summarizing my internet purchases for which I paid no sales tax so that I can report them on my CA tax return and hand the sales tax over to the State of California (I'll resist the urge to comment on the lunacy of this requirement).

Now, my cpap.com purchases alone will give me a sales tax amount due of almost $100, no small sum in my tiny budget. So I'm hoping that I will be able to process this tax payment through my insurance and/or my flex plan account for reimbursement. If I had paid the sales tax for a storefront purchase in CA, it would have been on the original bill that I processed through the insurance company and it would have been paid, right? Or do the DMEs in California not charge sales tax on durable medical equipment?

Any advice or wisdom would be greatly appreciated.

_________________


You think that's bad the state tries to tax my SSDI and my disability retirement that i get from my Govt. job.

when pigs fly.