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Illinois "Use Tax" - what do you make of this?

Have you noticed that this year this is a line item on the IL tax form re: a "Use Tax?" Apparently, the use tax was enacted in 1955 though not fully enforced until 2010 - kind of funny since one of the criteria is re: internet purchases (which wasn't around back then). Anyone else think this is yet another load of crap from the Illinois government???

Oh, and yes, you will now have to keep receipts for these types of things but not to worry if you're not the best at record keeping ... in that case, they will simply charge you using a scale based on your AGI.

Please share your thoughts.


http://www.revenue.state.il.us/Individuals/Illinois-Use-Tax.htm

 
Anonymous

Asked by Anonymous at 12:08 PM on Feb. 7, 2011 in Money & Work

This question is closed.
Answers (8)
  • Anonymous, paying taxes on forgiven amounts is a standard federal law.
    To the OP, the primary reason for that tax is so they could tax what you purchased online. They just used an "old tax law" to make it easier on them. Thing is, they have no idea how much or when you purchase stuff online, so I have no idea how they plan to enforce that. Stupid
    Candi1024

    Answer by Candi1024 at 12:50 PM on Feb. 7, 2011

  • I'm glad I moved out of Illinois!
    Jademom07

    Answer by Jademom07 at 12:18 PM on Feb. 7, 2011

  • Wow, what a horrible way to enforce that.
    Candi1024

    Answer by Candi1024 at 1:12 PM on Feb. 7, 2011

  • Candi1024, since there is no way to enforce it, they'll tax everyone who files based on a predesignated scale; it's already in place in the 2010 tax form procedures booklet. For people like my parents, grandparents, and in-laws who do not travel outside the state to purchase goods and who do not purchase online (they're old school), they'll get hit too for a tax that doesn't apply to them.

    Anon, I know you don't want to hear it but if you've ever taken an accounting class, forgiven debt is considered income (it's a benefit of sorts) so it is taxable. Seems cruel, I know, but it's Basic Accounting 101, not to mention federal law.
    Anonymous

    Comment by Anonymous (original poster) at 1:08 PM on Feb. 7, 2011

  • That is crap!
    Erica_Smerica

    Answer by Erica_Smerica at 4:03 PM on Feb. 7, 2011

  • This state is really starting to piss me off. A bit off your topic, but I REALLY hate the income tax increase most of all. My checks and DHs CHECKS ARE $20 SHORTER, meaning $80 MONTH less in take home pay.
    Anonymous

    Answer by Anonymous at 5:34 PM on Feb. 7, 2011

  • Anon, we are feeling the pinch of the 66% income tax increase too, and it completely sucks. If you stop and think about it, we are taxed on everything we use or come into contact with from the moment we wake up to the minute we go to sleep! Personally taxes are our biggest expenditure and it's only going to get worse.
    Anonymous

    Comment by Anonymous (original poster) at 5:50 PM on Feb. 7, 2011

  • I think it's crap too. My husband just got off the phone with our tax preparer and she asked him that. It sucks that we pay taxes no matter what and they get to piss around with our money, then they charge us more to fix their bad budgetting habits.

    Did you know as well if they charge off a credit card and you pay it off at a reduced amount and the rest is "forgiven" that the "forgiven" amount you STILL HAVE TO PAY TAXES ON???? Oh yes...it's considered "income".....
    I'm beyond frustrated.
    Anonymous

    Answer by Anonymous at 12:27 PM on Feb. 7, 2011

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