Bayley Davis Associates, Inc.

Which Washington State taxes am I required to pay? When are they due?

This video sponsored by the Washington State departments of Revenue, Labor & Industries, and Employment Security was created to help new businesses understand their tax reporting responsibilities.

 

What are the Sales & Use Tax rates in Washington State?

Sales and Use Tax rates in Washington state vary by location and should be collected based on where work is performed. This tool will help you determine the appropriate sales tax to charge based on location in the state.

 

What is the State Sales Tax Deduction?

The American Jobs Creation Act of 2004 gave taxpayers the option to claim state and local sales taxes when they itemize deductions. A series of legislation has extended the availability of this deduction, though if not renewed by Congress, it is set to expire on January 1, 2014.

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If you are itemizing your deductions on your federal income taxes, you can elect to deduct state and local general sales taxes instead of state and local income taxes as a deduction on Schedule A. You cannot deduct both.

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Am I eligible to claim the State Sales Tax Deduction?

You may be eligible to deduct either your actual expenses or use the optional sales tax tables available on the IRS website, plus the general sales tax paid on certain specified items, such as:

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• A motor vehicle, but only up to the amount of tax paid at the general sales tax rate; and

• An aircraft, boat, home (including mobile or prefabricated), or, in certain cases, a substantial addition to or major renovation of a home, if the tax rate is the same as the general sales tax rate.

 

How do I claim the State Sales Tax Deduction?

The IRS offers a standard deduction based on your income level and number of exemptions, or you may chose to calculate your receipts for the year. You do not need to calculate your standard deduction prior to bringing your information to Bayley Davis. If you wish to use your receipts you should total and include that with your tax information. To find more information or to calculate your standard deduction please use the calculator located on the IRS website.

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How do I apply for the Washington State Reseller Permit?

Reseller permits are free and will be issued to businesses that make wholesale purchases. The permits allow businesses to purchase items or services for resale without paying retail sales tax.

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