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Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA |
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 » From: Tampa, FL Dear TaxMama: I sell toys online at eBay and would like to have taxes taken out on them. Do I need a business license and tax #? How do i do this? April  I'm not sure what you mean. What taxes? Sales taxes? Income taxes? Either way, I don't think you can have eBay do that for you. On eBay, you're an independent person, offering things up for sale. You're in business for yourself. If you're talking about wanting to COLLECT sales tax for the items you're shipping, I don't believe that eBay is set up to do that. In looking at their sellers' tools, they don't mention sales tax. Here's what I suggest. 1.) Contact eBay and find out if they have the capability to add sales taxes to the orders.if they don't, 2 ) Build sales tax into the price. Many business do this. When you file your sales tax returns, report your total sales. Then, on the line on the form that asks for the amount of sales taxes that are included in the total sales, put the amount you built in. It's pretty easy to calculate backwards. Let's say that you report $10,000 in sales, including sales taxes. Using 8.25% as the sales tax rate, divide 10,000 by 1.0825 = 9,238 (rounded) Subtract that result from 10,000. (10000-9238) and you get $762 worth of sales tax. The only thing you'll need to do for special tracking is to separate out the sales that go out of state, that you don't report to Florida's sales tax department. So, let's say that out of your $10,000 in sales, $7,500 really were shipped out of state. You won't be paying sales tax in Florida on those. So, use the calculation I showed you to figure out the tax on only $2,500 worth of taxable sales. You'll find the application for the Florida Sales taxes here, along with links to forms and instructions. (For some reason, trying to download the form keeps freezing my browser. I hope that doesn't happen to you.) And yes, you do need to register with the state and get a sales tax license. You'll need to check with Tampa to find out if your city requires a business license. Most likely, yes. For more tips on how to make sure you do evertything right in your business, please go to TaxMama's FAQs page. Scroll down to the section on » Business and Job Issues Best wishes, Eva Rosenberg Your TaxMama  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg |
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