Are Online Services Taxable in Massachusetts?

Are online services taxable in Massachusetts?
The Massachusetts Supreme Judicial Court found that a taxpayer’s subscription fees for online software products are subject to sales tax as sales of tangible personal property.

Online services are typically subject to sales tax in Massachusetts. Services that are unrelated to the sale of tangible personal property are deemed to be taxed “services” by the state. This implies that you might be required to gather and send sales tax on the fees you charge if you offer an online service in Massachusetts.

Online advertising, cloud-based services including software and data storage, and digital downloads of music and movies are a few examples of online services that are chargeable with sales tax in Massachusetts. But certain internet services are free from paying sales tax. For instance, Massachusetts normally does not charge sales tax on subscriptions to newspapers and publications as well as online educational courses.

When can I submit my 2020 tax return?

On February 12, 2021, the IRS will start accepting tax returns for the 2020 tax year. This is coming a little bit later than normal because the IRS required additional time to build and test its systems to support the many changes the COVID-19 outbreak brought about. The deadline for filing and paying your taxes, however, is still April 15. When Do I Need to File My 2020 Taxes?

The due date for submitting your 2020 tax return and making payment is April 15, 2021. However, you have until October 15, 2021, to ask for an extension if you need extra time to file. It’s crucial to understand that getting a tax return filing extension does not provide you more time to pay any taxes that are outstanding. Even if you receive a filing extension, you still have until April 15 to pay any taxes you owe.

Can I submit my taxes right away? You can surely file your taxes right away if you have all the relevant information. Tax returns filed prior to February 12 will, however, not be processed until after that date because the IRS will not start processing tax returns until that day. Additionally, you might need to file an updated return to fix any mistakes or omissions if you get any tax documents like a W-2 or 1099 after filing your tax return.

In conclusion, internet services in Massachusetts are often subject to sales tax, however some services are exempt. The deadline for filing and paying your taxes is April 15, 2021, and the IRS will start receiving tax returns for the 2020 tax year on February 12, 2021. You can ask for an extension to file your return until October 15, 2021, but you must still pay any taxes due by April 15 if you need more time. Finally, you can file your taxes right away if you have all the information you need, but the IRS won’t start processing them until February 12.

Leave a Comment