State Tax

Hello tamarahastie! I'm an Enrolled Agent with TurboTax Live.

The basic rule for collecting sales tax from online sales is:

• If your business has a physical presence, or “nexus”, in a state, you must collect applicable sales taxes from online customers in that state.
• If you do not have a physical presence, you generally do not have to collect sales tax for online sales. However, in June of 2018, the U.S. Supreme Court issued a ruling that will likely change this exemption to collecting sales tax. States are expected to begin collecting sales taxes regardless of having a physical presence in the state.

A physical presence means that you have some business facility in that state. It could be any type of business operation, such as:

• A storefront
• An office
• A warehouse

Here is a link for more information on this topic: https://turbotax.intuit.com/tax-tips/self-employment-taxes/sales-tax-101-for-online-sellers/L4uTQCaIx