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Indiana Department of Revenue

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Indiana Department of Revenue

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New Issue of BizTax Now Available

November 30, 2016

The November issue of BizTax is available now. This newsletter is written with new and small Hoosier businesses in mind and includes resources to help your business succeed.

The November issue features articles about:

  • 2016 legislative updates;
  • Business Education Outreach Program updates; and
  • INBiz.

Click here to read the latest issue.

Share Your Feedback

Do you have a topic or questions you’d like addressed in BizTax? We’d love to hear your feedback.
Send suggestions and feedback to feedback@dor.in.gov with the subject line “BizTaxFeedback.” We look forward to hearing from you!

Black Friday and Cyber Monday Tax Tips

November 23, 2016

En Español

Thanksgiving weekend is full of good things – family, food, and gratefulness included. Adding even more fun to the holiday weekend is Black Friday and Cyber Monday, which are among the biggest shopping days of the year.

Whether you decide to go out on Friday or stay in on Monday, did you know you may be subject to different types of taxes depending on how you make your purchases? All purchases carry a tax: sales tax or use tax.

So, what’s the difference between the two?

Sales tax is a tax paid on most items at retail stores. When you buy an item from a retailer, you pay Indiana’s seven percent sales tax on that purchase. The retailer is responsible for collecting the tax and sending it to the state.

Use tax is owed when sales tax is not paid on purchases. This scenario often occurs when purchasing items online. Hoosiers shopping online on Cyber Monday should check to see if they are charged a sales tax. If a sales tax was not charged, use tax is owed to Indiana. Like sales tax, Indiana’s use tax rate is seven percent.

While sales tax is collected at the time of purchase, you usually won’t pay use tax on your purchase until you file your Indiana income tax return.

Need help calculating the use tax owed? Follow the two-step process outlined below.

Step One: Complete the worksheet in the IT-40 or IT-40PNR instruction booklet to help figure how much use tax is owed. Forms for the 2016 tax year will be available in December at www.in.gov/dor/3489.htm.  

Step Two: Enter the amount owed on Schedule 4 of Form IT-40 or on Schedule E of Form IT-40PNR.

For a list of Frequently Asked Questions regarding Indiana’s taxes, visit www.in.gov/dor/4710.htm.

Recent Posts

  • Sales Tax Exemptions for Nonprofits
    November 16,  2016

    Nonprofits are especially active during the holiday season. During this time of year, the famous “Hoosier hospitality” is displayed through food kitchens, holiday craft shows, toy collections, bake sales, and much more.  As the holidays approach, it’s easy to forget when nonprofits are or are not exempt from sales tax. Here’s a quick refresher. Read more...

     
  • What does the Taxpayer Advocate Office do?!
    November 9, 2016

    Have you ever experienced a tax issue that could not be resolved through Indiana Department of Revenue's normal processes? If an issue cannot be resolved through normal processes, the Taxpayer Advocate Office is avaibale to assist you. Read more...
     

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