One of the few US states that taxes apparel is Minnesota. In Minnesota, clothing is regarded as a taxable item, hence any clothes purchase is subject to sales tax. All sorts of clothes, including hats, gloves, shoes, and even costumes, are subject to this tax. There are a few exceptions to this rule, though.
apparel purchases made with the intention of reselling are one scenario in which Minnesota’s apparel sales tax is exempt. You are exempt from paying sales tax on clothes items if you own a business and buy them to resell. However, in order to be eligible for the exemption, you must give the seller a legitimate resale certificate.
The Minnesota clothes sales tax does not apply to clothing goods that are regarded as necessities. This includes things like infant outfits, winter coats, and diapers. In Minnesota, there is no sales tax on these items.
Let’s now discuss philanthropic contributions. Without requiring receipts, the IRS let taxpayers to deduct up to $300 in charitable contributions in 2020. This was a short-term tactic implemented to promote philanthropic contributions during the COVID-19 pandemic. However, the laws have altered as of 2021.
Taxpayers may still deduct up to $300 in charitable contributions for 2021 without providing receipts. You will need to present receipts or other forms of documentation, nevertheless, if you intend to claim charitable contributions totaling more than $300.
Let’s finally look at the itemized deductions that will be permitted in 2021. The IRS permits taxpayers to deduct specific expenses, such as those related to medical care, state and local taxes, mortgage interest, and charitable contributions. It may not always be advantageous to itemize your deductions, however, as the regulations governing itemized deductions have altered in recent years.
In conclusion, both fabric and garments are subject to tax in Minnesota. The clothes sales tax has some exclusions, including those for items bought for resale and necessities like winter coats and diapers. In 2021, taxpayers will be able to deduct up to $300 in charitable contributions without receipts, but any amounts above that will require verification of the donation. Last but not least, taxpayers will still be able to itemize deductions in 2021, although depending on the circumstances, this may not always be the best option.