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Posts Tagged ‘estate’

Tax Rates By State Chart

Question: NY state income tax – Sales or Use Tax – how can I estimate?

When you file NY state income tax this year, they have a provision for re-capturing Sales Tax that you allegedly avoided by making purchases without Sales Tax. There is a chart that says I avoided $200 in Sales Tax based on my income. I can declare a lower amount, but I don’t know how I would prove that I didn’t purchase more than $200 divided by the Sales Tax rate. Seems like an awkward or gimmicky provision. Does anyone know how most people are handling this Sales or Use tax?

Thanks.

Answer: Most people write zero in this line, and NY state does not have the staff to question them. A more conservative approach would be to use their estimate of $200. The state does occasionally go after those who try to evade this tax, but typically only in a situation where the state has written records or surveillance to prove you bought large items out of state. For example, the most famous recent case involves the purchase of million-dollar works of art.

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