Since I was one of those proposing automated solutions to this, I should reply. I was educated in the thread about the complexities that I didn't think about, such as the taxabiltiy of items and the tax exemptions of some customers. Forf the consulting work you do, you have at least federal tax on that income and perhaps state depending if your state taxes income. But for some other states you would also have to collect sales tax on that same income from your customers in those states. I appreciate getting more informed about this.
Some states tax income and also “service” at the time of sale as part of sales tax. KY just made a big grab in this area (imposing sales tax on services.) So much for moving there...
Thanks for the reply!
Indeed, should I sell “service” to someone in KY, for example (I have had customers there in the past), Federal and State income tax in my State apply, PLUS the new service sales tax in KY may apply.
BTW, I ran across THIS while trying to look into KY’s new services sales tax — I believe it is not current, and more categories are now taxable...
Good God. This is just “gag a maggot” rule making - and all too typical of government...
cc: to monkeyshine