The holidays are right around the corner. While preparing for a feast on Thanksgiving Day, many are also getting ready for Christmas and Hanukkah celebrations. This includes shopping for presents to give to family and friends.
Many choose to hit the stores on Black Friday, which is typically a day of crowds and lines leading out the door. Instead of rummaging through the huge hordes, you may prefer to complete your shopping online.
Forbes reported that you may be able to avoid the sales tax if you buy from an online merchant that does not operate a store in your state. Shopping online from a brick-and-mortar store that is located in your state, however, will include the sales tax.
The federal government has attempted to change this policy by putting forth a bill that would essentially put a stop to tax-free online shopping. The bill would allow states to collect sales taxes from many e-commerce retailers. However, The Wall Street Journal has reported that House Speaker John Boehner will be blocking this particular bill.
While retailers with physical locations have claimed online merchants have an unfair advantage and the Senate passed the bill known as the Marketplace Fairness Act, Boehner does not support this particular legislation.
Regardless of political stances, when making large purchases, be sure to stay organized and keep all your receipts to be prepared for tax season. This could be important information for deductions and general filing information.
During the holidays, many also donate to their beloved charities as well as spend their afternoons volunteering. When donating any sum, be sure to keep a list of every endowment made. This could be very useful for deductions during tax filing season. When shopping on Black Friday or giving to charity, keep these tips in mind and you’ll end up saving money.