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Yes, especially if you're tracking everything on paper (helps to always list the location code on the invoice), or if you're using QBO's automated sales tax calculation feature (which shows duplicate locations (usually counties) on the Sales Tax Liability Report. It's worth the time to make sure whatever system you're using streamlines that reporting as much as possible.

That is pretty scary. Hopefully we're able to help spread the word that these things are out there and to be very, very careful. Good catch!

Sorry for the delay! No, you aren't able to use the reseller permit for equipment like the laser or for things that you're using to run your business. It can only be used for items that you're essentially selling to your clients. dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits You can also reach out to DOR for written clarification if you have questions, so that you have something to rely on.

When you complete your DOR filing, make sure you're reporting your income as Retail income. It won't let you get through the screens without choosing the location and calculating sales tax. If you're entering it as Service income instead, that might be the problem.

@@abellatax thanks for the fast response! That might have been the issue, Ill see if I can edit to retail.

It's a deduction allowed for the sales tax you paid on products/services that you have resold and collected sales tax on again. So if I buy a $10 widget and pay $1.06 sales tax on it, and sell the widget for $12 and collect $1.27 in sales tax, my DOR filing would show $12 in sales for B&O tax purposes, $12 in sales for retail sales tax purposes, and a deduction for $10 for sales tax paid at source. My tax bill would be 1.27 - 1.06 = 0.21.

You can amend four years of filings, plus the current year, to take the Sales Tax Paid at Source deduction. Be sure to keep complete and careful records.

Being a business owner does add a lot of administration to your plate, and I know it's a challenging time to get in with an accountant for advice, at the height of tax season, but it should be easier after April 15. In the meantime, if you haven't already, set up a separate bank account for your business and be sure to use that account for all business income/expenses. It'll keep things cleaner for you than mixing in your personal account. Hang in there!

@@abellatax thank you so much! I do have a business bank account so at least I'm doing something right. Thank you

The state will generally work with you on a payment plan once you get the late filings submitted. Most important is to communicate with the state. They're much harder to work with if you avoid them, as sales taxes are trust funds. Easier said than done, I know, but back filings need to be submitted, a payment plan established, and processes in place in your business to make sure upcoming filings are filed and paid on time.

Lynnwood, WA

Assuming you're located in WA State, you'd need your state (and possibly city) business licenses and reseller permit. The state business license process should alert you if there are specialty licenses needed.

Hi! If you mean the mechanics to actually file a return, tutorials from your software provider are going to be most helpful. They're all quite different. If you mean tax theory, we've posted an array of videos around filing status, deductions, and credits and are adding more each week.

You would still be charging sales tax on those sales and reporting the full sales price to the state. You're welcome to request written guidance from the state if you have an unclear situation: dor.wa.gov/contact/request-tax-ruling-0

Hi! No, there is no federal reporting required to the recipient or to the IRS if the total gift is less than 17k per person for the year. (If you give stock, though, instead of cash, the recipient will need to know what you paid for the stock.) There is no tax deduction for these personal gifts (but they're also not taxable to the recipient).

Thanks for the feedback. Do you mean product based exemptions from sales tax like prescriptions, certain bakery items, etc., or something else? WA's deductions and exemptions are very narrow and don't apply to most businesses. I'd be happy to put together a follow-up video with more detailed info, but I'm not sure what you're looking for.

If you're new to tax, I'd highly recommend working for a firm to gain experience while surrounded by others that can help you with gaps in knowledge. Tax is a HUGE field with a lot to know to be successful on your own. My understanding is that there are a number of companies in India that are rapidly building out accounting and tax teams to support US accounting firms. We aren't currently outsourcing, but it seems to be the way the industry is going. Good luck!

I do, too, on my personal cell phone. Hopefully it'll slow down soon, as the IRS has started auditing these claims and the audits don't seem to be going well for the ERC companies.

It's certainly the least popular program I've seen rolled out in the tax/payroll realm.

Welcome! Yes, you still charge your customer sales tax, but when you file with WA DOR, you take the Sales Tax at Source deduction to deduct the sales tax you already paid. dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits/taxable-amount-tax-paid-source-deduction