Posts Tagged ‘Use Tax’

Get Ready, Get Set, Get Shopping!

Monday, August 1st, 2016

2016 Tax Free Holiday Is Aug. 5-Aug. 7

2016 Sales Tax Holiday | Rea & Associates | Ohio CPA Firm

This weekend when you are out back-to-school shopping, don’t be afraid to fill the cart with a little bit more! Friday, Aug. 5-Sunday, Aug. 7 is Ohio’s sales tax holiday! Read on to find out which items will be exempt from sales and use tax.  Don’t forget to share this post and/or this photo to remind friends and family of this event!

Will you be one of the many shoppers flooding stores this weekend in search of some great back-to-school bargains? If so, then your shopping trip got a whole lot better! This year’s Sales Tax Holiday will take place Friday, Aug. 5-Sunday, Aug. 7.

Read Also: Five Things You Didn’t Know About Ohio’s Tax Holiday

Without the burden of paying sales tax on a variety of items, shoppers will be able to make their dollars go a little further, which is especially great for those looking to fill their closets with the latest back-to-school fashions and their desks with school-time necessities.

This year during the sales-tax holiday, according to the Ohio Department of Taxation, the following items will be exempt from sales and use tax:

  • Clothing priced at $75 per item or less;
  • School supplies priced at $20 per item or less; and
  • School instructional material priced at $20 per item or less.

If you have Sales Tax Holiday questions, including how the tax free holiday works, how coupons and discounts are handled, and what products are eligible for the exemption, check out this helpful FAQ page, or you can call 800-304-3211.

By Lisa Beamer, CPA (New Philadelphia office)

Looking for more ways to save money, check out these articles!

Three College Savings Account Tips You Can’t Afford To Ignore

From Toddler To Teen And Beyond: Tax Breaks For Families

Make Traveling For Charity Part Of Your Summertime Tax Savings Strategy

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Escape The Summertime Lull Will Expert Business Advice

Tuesday, July 5th, 2016

Top 5 Blog Posts In June

Just because the temperatures are higher and the days are longer doesn’t mean the team at Rea & Associates is taking a break from providing you with the latest financial and business advice.

In June we brought you tips about tax savings, advice on starting your own business, standing out against your competition and so much more. But which blog posts tickled your fancy? The following posts had more clicks than there were fireflies flitting across an open meadow during the summer solstice. Which post was your favorite?

  1. How To Become A Millionaire: The odds of winning Powerball are 1 in 292 million. The odds of winning Mega Millions are 1 in 259 million. The odds of winning Ohio’s Classic Lotto are 1 in 14 million. But if you were to invest the money you would normally spend the lottery into a 401(k) plan, your chances of winning big are all but guaranteed! Keep reading to learn how.
  2. How Are You Different From The Competition?: You have the opportunity to go above and beyond the call of duty every time you engage with a client. And don’t think that your superior work and insight will go unnoticed! Click here to find out why.
  3. Looking to Start a Business? Do It the Right Way: Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.
  4. How Can You Track Use Tax in QuickBooks?:  Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3.
  5. Do You Know The Best Way To Buy A Business?:  Generally speaking, relationships are easier to develop and maintain when you work with the other person. The same is true in business, especially when you’re considering the relationship between a business owner and an advisor.

Do you have a question for our team of business experts? Is there a topic you are just dying to learn more about? Send me a message and put the Rea team to work helping you take control of your success this summer!

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Celebrate the ‘Frog Days of Summer’ with Top Blog Posts for the Month of May

Wednesday, June 1st, 2016

Ah, June! One of my favorite months of the year! Nothing I enjoy more than sitting back on my lily pad catching up on the latest business and financial news. But before I start sharing insight to help you guide your business through the dog days of summer, let’s take a look at what topics were hot in May!

  1. New DOL Rule Shakes Up Exemption Threshold – The Department of Labor announced its publication of a final rule to update the regulations governing the exemption of certain classes of employees from minimum wage and overtime pay protections of the Fair Labor Standards Act, which provides for an updated salary and compensation threshold for executive, administrative and professional employees to be considered exempt as well as provides an amendment to the salary basis test to allow employers to utilize nondiscretionary bonuses and incentive payments to satisfy up to 10 percent of the new standard salary level. Yikes! That’s a mouthful! Keep reading to learn more about this rule change.
  2. Would You Know If Someone Was Stealing From Your Business? – According to the 2016 Report to the Nation on Occupational Fraud & Abuse by the Association of Certified Fraud Examiners, the typical organization loses 5 percent of its annual revenue to fraud. What are you doing to prevent fraud from occurring in your organization?
  3. Did Prince Forfeit Control Over His Multimillion Dollar Estate? – Many of us were sad to hear of Prince’s untimely death. But perhaps just as shocking was the news that the music legend neglected to draw up a will, reinforcing the importance of estate planning – regardless of how large (or how small) your fortune is. Keep reading to find out why a will is one of the most important documents you will ever have drawn up.
  4. How Can You Track Use Tax in QuickBooks? – Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3.
  5. Who’s Driving Your Business’s Results? – Businesses that drive consistent revenue growth are able to do so because they have honed in on the importance of working with their teams to drive measurable results. And, believe it or not, it’s not rocket science! Take a look at these three tactics for tips to help you achieve the growth goals you’ve been working toward.

Is there something you want more information about? Got a question for me? I would love to answer it, just contact me and I will get you the answer.

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If You Buy Online You Might Owe Use Tax

Monday, March 2nd, 2015
Ohio Use Tax

Amazon purchases aren’t the only ones to consider when you sit down to file your tax return this year. Other popular online retailers and groups, including Etsy, are also depending on their consumers to pay use taxes on the products they sell. – Rea & Associates – Ohio CPA Firm

If you are one of the millions of people who love to browse and buy online, it may shock you to learn that the Ohio Department of Taxation is looking at you to declare and pay a little more when you go to file your 2014 tax return. From gifts to grocery shopping, many of us use the ease of online shopping to snag a good deal and avoid the hassle of braving the brick-and-mortar shops – especially during the holidays, but sometimes that convenience might come at a price.

Were you charged sales tax for that pair of shoes you bought last October or those books you had shipped to your house in June? If the company you made purchases from doesn’t have facilities in the state or a law that requires it to collect sales taxes for your state, then it’s likely you owe use tax to Ohio – and you have to report your use tax on Line 19 of your Ohio Form IT 1040.

Use Tax Is Not A New Tax

Declaring and paying sales and use tax on your state tax return is not a new responsibility. The Ohio Department of Taxation states that “in transactions where sales tax was due but not collected by the vendor or seller, a use tax of equal amount is due from the consumer.” In Ohio, the use tax rate is the same as sales tax rate you would have paid if sales tax was correctly charged by the vendor.  This is usually the place of purchase (or your home address for shipments from outside Ohio). You can read Ohio’s use tax law in its entirety here.

As a courtesy, Amazon provides a brief explanation of the consumer’s responsibility to pay use tax on its website. Because Amazon suspects its customers aren’t keeping a file of receipts, the online retailer provides customers with the option to create and download an Order History Report, which compiles your download, shipment, return and refund activity and can be used to help calculate use tax.

But your Amazon purchases aren’t the only ones to consider when you sit down to file your tax return this year. Other popular online retailers and groups, including Etsy, are also depending on their consumers to pay use taxes on the products they sell. So make sure you take a second look at that packing slip and receipt.

Little Box, Big Pause

While the responsibility of paying use tax isn’t new, this is the first year taxpayers in Ohio are required to certify their use tax claim before filing their return with the state. If you didn’t shop online or make a “sales tax-free” purchase, you should have nothing to worry about – simply check the box and continue on. On the other hand, if you did partake in online retail therapy in 2014 and don’t have your receipts handy, you may have to pause your tax preparation to give yourself a little more time to find out what you owe.

To find out more use tax, email Rea & Associates.

By Joe Popp, JD, LLM (Dublin office)

 

Related Articles:

Theft Safeguards To Cause Tax Return Delays In Ohio

A Use Tax Audit Could Cost You Big

Do You Have Ohio Use Tax Exposure?

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Is It Fair to Require Online Retailers to Collect and Remit State Sales Tax?

Wednesday, September 12th, 2012

Recently we’ve been hearing calls for everyone to pay their fair share of taxes. One regular target: online retailers, who are being criticized for failing to collect and remit sales tax. But, like many questions of tax policy, this one is more complicated than headlines might lead you to believe. (more…)

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A Use Tax Audit Could Cost You Big

Friday, July 27th, 2012

The State of Ohio is looking for additional tax dollars, and they’re not going to give you the benefit of the doubt if your business is audited for use tax. But you may be able to avoid a use tax audit if you qualify for a one-time opportunity to enter into the State of Ohio’s amnesty program. (more…)

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Do You Have Ohio Use Tax Exposure?

Tuesday, June 26th, 2012

Commonly Overlooked Ohio Use Tax Liabilities

For the last year, we’ve been telling you about the State of Ohio’s efforts to step up enforcement of its use tax law. Use tax can be thought of as a companion tax to sales tax. In many cases, if you didn’t pay Ohio sales tax, chances are you will owe Ohio use tax. (more…)

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Is Ohio Use Tax Amnesty just for companies?

Monday, March 26th, 2012

Everyone’s heard of sales tax.  That extra 7-ish percent that you pay on all of your purchases that goes to the State of Ohio.  But many consumers haven’t heard of use tax.  An accompaniment to sales tax, use tax is a tax on the goods and services that you should have had to pay sales tax on, but didn’t.  Confused? (more…)

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How do you participate in Ohio’s use tax amnesty program?

Friday, March 9th, 2012

The requirements for participating in the State of Ohio’s use tax amnesty program’s payment program just got a little easier. (more…)

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How Can You Track Use Tax in QuickBooks?

Wednesday, February 29th, 2012

Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3. (more…)

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Ohio’s Use Tax Amnesty Program

Wednesday, July 6th, 2011
Your Ohio business has a one-time opportunity to lessen your use tax liability due to a use tax amnesty measure recently passed as part of Ohio’s budget bill. It’s one of the most taxpayer-friendly laws the State of Ohio has ever enacted. (more…)
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Have Questions About Ohio Use Tax? See Our Resource Center

Wednesday, April 20th, 2011

As we’ve been telling you over the past few weeks, the state of Ohio is about to step up its efforts to enforce its use tax law. To help businesses better understand and comply with Ohio’s use tax law, Rea & Associates recently created the Ohio Use Tax Resource Center, an online resource center. As far as we know, it’s the only resource center of its kind available to Ohio businesses.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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What Does Ohio Use Tax Mean to You? Learn More in this Webinar

Tuesday, March 22nd, 2011

Ohio’s Department of Taxation is getting serious about its enforcement of the state’s use tax law – and the longer you wait to comply, the more it will cost you.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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Are You Paying Ohio Use Tax?

Wednesday, March 2nd, 2011

Ohio’s Department of Taxation is stepping up efforts to enforce its use tax law in 2011. If your company does not have a use tax account, it’s no longer a question of if, but when, the department will contact you. (more…)

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Should I Worry About Use Tax?

Friday, September 3rd, 2010

In a word, yes. The State of Ohio plans to initiate a campaign to make sure Ohio taxpayers not only have use tax accounts, but are also reporting transactions that involve use tax. This initiative is set to begin within the next six months. Here is what you need to know to be in compliance: (more…)

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