Sunday, January 11, 2015

Everything is Taxable… Almost

Kids pay taxes, so why shouldn't you?

Whether or not kids have to file their tax returns, they inadvertently pay taxes. Items like candy bars and other sweets are subject to sales tax, which depend on where the children buy the items. In Minneapolis, the sales tax is at 7.775 percent, derived by combining the tax rates of the state (Minnesota), county (Hennepin County), and city (Minneapolis). 

Minnesota Revenue explains what qualifies as taxable candy, which can be made out of any ingredient except flour. Candy bars usually containing pure chocolate, nuts, or a mix of the two are subject to sales tax. So when a kid buys a Snickers at his local convenience store, the price tag may already include the sales tax.

In fact, it doesn't matter whether you're 13 or 30 years old. Virtually everything you buy from the local Wal-Mart or Costco is taxable, meaning you're paying taxes whether you like it or not. Your filing with the IRS is no different. One way or another, the local and federal government have to look for other avenues of revenue.

Don't ignore your taxes, especially if you have a history of delayed dues. Otherwise, you may never enjoy that savory candy bar again.

No comments:

Post a Comment