Idaho 850 U Form

Idaho 850 U Form

The Idaho 850 U form is a tax document used to report and pay the use tax owed on goods that individuals or businesses utilize or store in Idaho. This form is essential for those who have made untaxed purchases, including significant one-time acquisitions like jewelry or artwork. Understanding how to accurately complete this form is crucial for compliance with Idaho tax regulations.

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The Idaho 850 U form is an essential document for residents who need to report and pay use tax on goods that have not been subjected to sales tax. This form is particularly relevant for individuals making one-time significant purchases, such as jewelry, artwork, or aircraft, as well as for those whose total use tax liability is less than $50. Use tax applies to items that are stored or utilized in Idaho when sales tax has not been paid, except in cases where the items are held for resale or qualify for specific exemptions. The use tax rate mirrors the sales tax rate, which means that if you acquire merchandise online, via phone, or through mail-order without sales tax included, you are responsible for remitting the use tax directly to the Idaho State Tax Commission. Additionally, purchases made outside of Idaho that are shipped back home also incur use tax obligations. The form provides a worksheet to help track untaxed purchases, ensuring accurate reporting. Users will need to enter details such as purchase dates, descriptions of the goods, and their prices to calculate the total use tax due. Completing this form accurately is crucial for compliance with state tax regulations.

Steps to Writing Idaho 850 U

Filling out the Idaho 850 U form is a straightforward process. This form allows individuals to report and pay use tax on untaxed purchases. Follow these steps to ensure accurate completion of the form.

  1. Gather necessary information, including the dates of your purchases, descriptions of the goods, and their purchase prices.
  2. Complete the Use Tax Worksheet by entering the purchase dates in Column 1.
  3. In Column 2, provide a brief description of each item purchased.
  4. Record the purchase price of each item in Column 3.
  5. Calculate the use tax for each item by multiplying the purchase price in Column 3 by the applicable use tax rate. Enter this amount in Column 4.
  6. Total the amounts in Column 3 and enter this total on Line 1 of the 850-U form.
  7. Total the amounts in Column 4 and enter this total on Line 2 of the 850-U form.
  8. Fill in your name, address, Social Security Number or Federal ID Number, and the tax period on the form.
  9. Attach your check if you are paying by check.
  10. Sign and date the form.
  11. Mail the completed form to the Idaho State Tax Commission at the provided address.

After submitting the form, keep a copy for your records. This will help you track your tax obligations and ensure compliance with Idaho tax laws.

Key takeaways

When filling out the Idaho 850 U form, it is essential to understand its purpose and requirements. Here are some key takeaways to keep in mind:

  • Use Tax Definition: Use tax applies to goods that you use or store in Idaho without having paid sales tax on them. If you buy items from out of state or online and no sales tax is included, you are responsible for reporting and paying use tax.
  • Eligibility for Form 850-U: This form is typically used when the total use tax owed is less than $50. However, individuals making significant one-time purchases, such as jewelry or artwork, can also utilize this form.
  • Detailed Record Keeping: Use the provided worksheet to track untaxed purchases. Record the purchase date, description, and price of the goods. This information will help you accurately complete the form and ensure compliance.
  • Payment Instructions: If you are paying by check, attach it to the completed form before mailing it to the Idaho State Tax Commission. Make sure to include all necessary details to avoid processing delays.

Listed Questions and Answers

What is the Idaho 850 U form used for?

The Idaho 850 U form is used to report and pay the use tax you owe on goods that you have purchased but did not pay sales tax on. This form is typically utilized if you owe less than $50 in use tax. It is also suitable for individuals making one-time large purchases, such as jewelry or artwork.

Who needs to file the Idaho 850 U form?

Any individual or entity that has made untaxed purchases and owes use tax must file this form. This includes people who buy items online, through catalogs, or from other states where sales tax was not charged. If you have made multiple purchases, you can report them all on this form.

What is use tax?

Use tax is a tax imposed on goods that are used, stored, or consumed in Idaho. If you have not paid sales tax on these goods, you are required to pay use tax. Certain exemptions may apply, such as items held for resale. If you have paid sales tax in another state, you do not owe use tax.

How do I calculate the use tax I owe?

To calculate the use tax:

  1. List the purchase date, description, and purchase price of the untaxed goods.
  2. Multiply the purchase price by the applicable use tax rate.
  3. Total the amounts to determine your total use tax due.

Keep in mind that the use tax rate is the same as the sales tax rate, which varies based on the date of purchase.

What if I have multiple purchases?

You can report multiple purchases on the Idaho 850 U form. Use the worksheet provided with the form to list each purchase along with the date, description, and purchase price. This will help you accurately calculate the total use tax due.

How do I submit the Idaho 850 U form?

Once you have completed the form, mail it along with any payment to the Idaho State Tax Commission at the address provided on the form. If you are paying by check, be sure to attach it to your return.

What happens if I don’t file the Idaho 850 U form?

Failing to file the Idaho 850 U form when you owe use tax can result in penalties and interest. It is important to comply with tax regulations to avoid any legal consequences. If you have questions about your specific situation, consider consulting a tax professional.

Where can I find more information about the Idaho 850 U form?

For more information, you can visit the Idaho State Tax Commission's website. They provide resources and guidance on use tax and the filing process. You may also contact their office directly for assistance.

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Documents used along the form

The Idaho 850 U form is primarily used to report and pay use tax owed by individuals for items purchased without sales tax. In conjunction with this form, several other documents may be necessary to ensure compliance with tax regulations. Below is a list of related forms and documents commonly utilized alongside the Idaho 850 U form.

  • Idaho Sales Tax Permit Application: This document is required for businesses that intend to sell goods or services in Idaho and need to collect sales tax. It allows the Idaho State Tax Commission to issue a permit that grants the authority to collect sales tax from customers.
  • Idaho Individual Income Tax Return (Form 40): This form is used by individuals to report their income and calculate their state income tax liability. It may be relevant for individuals who need to account for use tax as part of their overall tax obligations.
  • Idaho Use Tax Exemption Certificate: This certificate is used by purchasers to claim an exemption from use tax on specific items. It serves as proof that the goods purchased are exempt from use tax under Idaho law.
  • New York Motorcycle Bill of Sale form: This legal document is crucial for recording the sale of a motorcycle in New York, ensuring both buyer and seller maintain a clear understanding of the transaction details, as highlighted on UsaLawDocs.com.
  • Idaho Tax Commission Correspondence: Any communication from the Idaho State Tax Commission regarding tax assessments, notices, or inquiries can be important. Keeping these documents organized is essential for accurate record-keeping and compliance.

Understanding these related forms can help individuals and businesses navigate their tax responsibilities more effectively. Proper documentation ensures compliance with Idaho tax laws and aids in accurate reporting of use tax liabilities.

Form Sample

OR850-U

Idaho Self-Assessed Use Tax

F

 

M EFO00143

Worksheet and Return

 

01-02-09

 

Use Form 850-U to report and pay the use tax you owe. If you owe less than $50 in use tax, you will generally use this form. However, you may also use this form if you’re an individual (non-business) and you make a one-time large dollar purchase of items such as jewelry, artwork, or an aircraft. You can report single or multiple transactions. If you pay by check, please attach your check to the return.

What is use tax? Use tax is a tax on goods that you put to use or store in Idaho. If you have not paid sales tax on these goods, you owe use tax (unless the items are held for resale or an Idaho exemption applies). If Idaho or another state’s sales tax is added to the purchase price, you do not owe use tax. The use tax rate is the same as the sales tax rate.

For example, if you buy merchandise through the Internet, over the telephone, or from mail-order catalogs, and sales tax is not added to the price, you are responsible for paying the use tax directly to the Idaho State Tax Commission. Also, if you travel outside the state and purchase untaxed merchandise that is brought or shipped to your Idaho home, you owe use tax.

Use the worksheet below to track your untaxed purchases. Keep this worksheet for your records.

Column 1. Enter the date you purchased the untaxed goods. Add the purchase date to the Tax Period ield on the 850-U. If you made multiple purchases, enter the dates of your irst and last purchases.

Column 2. Enter a description of the goods purchased.

Column 3. Enter the purchase price of the goods from Column 2. Total Column 3, and enter amount on Line 1 of 850-U.

Column 4. Multiply the purchase price in Column 3 by the use tax rate* at the time of purchase. Total Column 4, and enter amount on Line 2 of the 850-U.

Use Tax Worksheet

Column 1

Column 2

Column 3

Column 4

Purchase Date

Description of Goods

Purchase Price

Column 3 x rate*

 

 

Total Purchases Subject to Use Tax

»

 

 

 

* Rate if purchase date is:

 

 

 

 

 

 

 

 

 

Oct. 1, 2006 or after, the rate is 6% (.06).

 

 

Total Use Tax Due »

July 1, 2005 - Sept. 30, 2006, the rate is 5% (.05).

 

 

May 1, 2003 - June 30, 2005, the rate is 6% (.06).

 

 

 

 

April 30, 2003 or before, the rate is 5% (.05).

 

 

 

 

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OF 850-U

Idaho Self-Assessed Use Tax Return

 

 

 

 

R EFO00143 (01-02-09)

 

 

 

 

 

 

M

 

 

 

 

 

 

Name

Address

Social Security Number or Federal ID Number

 

Month

Year

Month

Year

Tax Period

__ __ / __ __ __ __

to __ __ / __ __ __ __

City

State

ZIP

1. Amount Subject To Use Tax

$

2. Use Tax Due (from worksheet)

$

My check is attached

 

 

 

(

)

Signature

 

Date

 

Phone number

Mail to: Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410