I got a ST-100 form from the department of taxation?

Question

I received my tax ID back in January so then I could sell my homemade baby things at craft fairs.... I have only sold 2 at a craft fair since January.

I received a ST-100 Quarterly Sales and Use Tax Return form in the mail....

What the heck is it and what do I do about it? Figure out the tax? The baby slings are sold for $26.00, including tax and everything... so I just figure out the tax of $26.00 and send that to them? I am so confused....

Answer 1

You need to pay your state (New York????) the portion of the $26 that was sales tax by backing in to the tax.

Take $52 / (1+tax rate).

For example, if the tax is 8.25%:

52 / (1.0825) = $48.04.  So, of the $52 that you took in, you get to keep $48.04 and you must send $3.96 to the state.

Good luck.  New York state forms can be very frightening a first but they will be a piece of cake after you do them a few times.

Answer 2

Thinking it over, the (as I write this) other answer is incorrect.

You need to specify what state you're in, but, basically, fill out the form according to the instructions, keeping in mind the amount of sales tax you told your customers you were collecting.  Normally,  if your sales tax rate is 8.25%, you calculate your total sales ($52), multiply by 8.25%, and send that in.

Most states do not allow you to recalculate on a "sales tax included basis", in which cases your sales would be $52/(1.0825), and you'd send in the difference between that and $52.