A Tax Tip

January 2020

Form W-2 will be arriving in mailboxes soon!

Did you know that if you purchased holiday gifts online and were not charged sales tax, you likely owe the state use tax on the purchase price? Not all remote sellers are required to collect California sales tax, so if the seller didn’t charge you tax, then you, as the consumer, are responsible for paying it. Generally, if the item would have been taxable if purchased from a brick-and-mortar retailer in California, it is subject to use tax. Use tax is owed by April 15 in the year after you make a purchase for which California tax was not charged. You may report use tax on your California state income tax return or to the California Department of Tax and Fee Administration by visiting https://onlineservices.cdtfa.ca.gov/Directory/.

For more information on the use tax, refer to CDTFA Publication 110, California Use Tax Basics, available online at https://www.cdtfa.ca.gov/formspubs/pub110/#use.