I was talking to a writer-friend of mine yesterday and he claims he adds state tax to all of his invoices.

Is this common? I always thought services were billed flat-rate, as opposed to buying a product.

I apologize if the above is a ridiculous question - it's something I had never really thought of before.

Susan,

This is a reasonable question, and the answer depends on what state you live in. Find the Department of Revenue web site for your state and look up the sales tax rules there. Or call them. I know this sounds weird, but I live in Massachusetts and have found the state tax department office people in Boston extremely helpful, friendly, accessible and a pleasure to deal with every time.

Marcia Yudkin

Hi Marcia,

Thank you very much! I just emailed the RI Taxation Division to see if they can shed some light on this.

Take care,
Susan

Hi Susan.

I hate to say it, but I think it is important to note that what the IRS representative tells you may not be legally binding... for them.

You bear the legal and financial burden, even if the IRS representative provides you with inaccurate or incorrect information.

That said, I'm sure they'll give you enough information to enable you to research an answer that's to your satisfaction.


Peter