• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts

Video: Shopping Online with Your Holiday Gift Cards? Beware of This Dirty Secret

Using all those gift cards you got this holiday to catch some post-Christmas sales? Well be careful. Not every deal is as good as it looks! Watch this 60 Second Tip by Tracy Byrnes to find out more about online shopping's dirty little tax secret.
By TRACY BYRNES Jan 11, 2018 | 08:40 AM EST

Sure, it's great to pull out all those gift cards and shop online during your lunch hour.

But beware of states sales tax.

If you live in a state with sales tax and you don't get charged while shopping online... YOU STILL OWE IT! Yep.

Most of the time, you are paying sales tax when you hit the buy button anyway. But there are times when this doesn't happen.  Some small businesses may not collect it.

Also, if you are dealing with a business that does not have a physical presence in your state, they might not collect it either.  While this might feel like you are getting a bargain, you need to declare this on your taxes at the end of the year.  Why?  Because you owe your state taxes, no matter what.  Unless you are lucky enough to live in Alaska, Delaware, Montana, New Hampshire and Oregon, where you can shop free and clear of state sales tax.

Why are you on the hook?  Well if you are not charged sales tax, you still owe something called "use tax."  That's the formal name, but think of it as a delayed version of a sales tax.  You are basically charged the same state sales tax rate -- no matter when you pay it.  I know it's a drag, but just remember these taxes go to your state, so if the potholes in your town are really giving you a headache, then pay your fair share come tax time. 

For more on the tax rules you need to know, get more at TheStreet.com

More 60 Second Tips with Tracy Byrnes:

  • Drowning in Debt? Here's How to Get Above Water
  • How to Re-Enter the Workforce as a Retiree
  • Navigating Financial Aid
  • Questions to Ask Before Marriage
  • Why Your Dream Job Might Not Be Advertised Online
  • Here's How You Can Help Your Toddler Retire a Millionaire
  • Do You Need Long Term Care Insurance?
  • Best Return on Your College Investment

 

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

TAGS: Roth IRAs | Investing | Video | Stocks | Taxes | Personal Finance | Travel | Consumer Credit | Tax Tips | Retirement | 401(k) | Editor's Pick | Markets | Tax Planning | Going to College | Renewable energy | Insurance | Money Basics | Raising a Family | Refinancing | Social Security | Student Loans | Financial Advisors | Opinion | Financial Services | Luxury Goods | Cybersecurity

More from Roth IRAs

Who Wants to Be a Millionaire - 2023 Edition

Paul Price
Jan 9, 2023 7:00 AM EST

Roth IRAs are the best investment vehicle ever created for accumulating wealth.

You Need to Be in the Game... to Win the Game

Paul Price
Aug 9, 2022 7:00 AM EDT

None of the stocks on my 'Sweet Seventeen' list of best ideas are even remotely close to what I calculate as fair values over the coming 12-24 months.

This Year Has Been Ugly. Here's a Trick to Make Up Some of the Damage

Paul Price
Jul 1, 2022 7:00 AM EDT

Let's look at the incredible value of Roth conversions, during trying times.

Get Rich Slow

Paul Price
Apr 21, 2021 7:00 AM EDT

Get-rich quick schemes offer little more than pipe dreams. Here's the way to become wealthy over time.

60 Seconds: Best (Financial!) Gifts for Grads

Tracy Byrnes
Jun 21, 2018 8:01 AM EDT

Caps and gowns abound this time of year. But before you buy another cheesy "You Did It!" statue for your favorite graduates, take 60 seconds and watch this video for some gifts that can set them up financially.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login