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April 26, 2025
Question

Are sales tax and estimated taxes the same thing for someone who is self employed? Received letter from the state and they didn't include the taxes I paid in 2024.

  • April 26, 2025
  • 1 reply
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I just received an adjusted refund letter from the state. They are claiming I never paid the quarterly taxes I paid throughout 2024 and this is causing my refund to be substantionally lower than what it originally was supposed to be. I have the receipts for all of the taxes paid each quarter, should I appeal? - Thank you in advance for any help!

    1 reply

    April 27, 2025

    No, sales tax and estimated payments are not the same.  Sales taxes are the taxes that you pay when you purchase goods and services.  Generally the merchant has to collect it and submit the tax to the state.  

     

    Estimated taxes are quarterly payments that you make to the IRS and the state, for any income that you received that did not have federal and state withholding.

     

    You would have to review your letter to see what they are asking for.  If in your businesses you sell goods or taxable services, you would need to file a sales tax return with your state.  If you need additional questions, feel free to reach out again.  

     

    See the TurboTax help articles below for more information:

     

    What Are State Sales Taxes?

    What are federal estimated taxes?