The taxman cometh - for your online purchases?

According to IBM, shoppers spent a record $1.25 billion on Cyber Monday last year. As the trend of online shopping continues to rapidly increase, Pennsylvania taxpayers may be wondering whether those online purchases will come back to cause them headaches during tax season. Pennsylvania state tax returns will now include a line for use-tax, asking taxpayers to claim how much they owe on purchases they’ve made online without paying state sales tax.

The question is “What’s considered taxable?” If you buy a book online, does that count? What if you download that same book to a Kindle? Are downloaded songs in this same category? If you’re unsure of how much you might owe, is there a penalty if you enter zero into this new line?

The uncertainty taxpayers face when trying to identify which of their purchases are taxable is daunting. Let tax experts from the Pennsylvania Institute of Certified Public Accountants (PICPA) help your audience avoid the confusion now and offer tips on how to plan for next year’s return. Contact Kathleen Miller to set up an interview with a local CPA at 215-972-6188 or kmiller@picpa.org.

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