Taxes in PA

[failbird105]

So I know there's I steam tax in some states, I unfortunately only found this out once I began inputting the steam gift card that I purchased. What I would like to ask is, is Pennsylvania one of the states that has the actual tax?

[Chompman]

You should not be paying tax when you add a steam gift card but when you use the money that's on it.

Otherwise yes some states have taxes on the games like that when buying on steam and even if you are not charged for taxes in one of the states without a tax like that you are legally required to report it on your taxes when not charged taxes for purchases online.

[failbird105]

Originally posted by Chompman:

You should not be paying tax when you add a steam gift card but when you use the money that's on it.

Otherwise yes some states have taxes on the games like that when buying on steam and even if you are not charged for taxes in one of the states without a tax like that you are legally required to report it on your taxes when not charged taxes for purchases online.

Yes but what I want to know is do I have the tax in my state or not?

[HLCinSC]

Most likely no. You can always check by adding something to your shopping cart then proceed to pay for it and before you submit the order it should display any taxes that are part the purchase.

[ThousandthHour]

Disclaimer: I'm not an accountant, and this is all original research.

Tl;Dr: I think you have to pay 6% (7% in Allegheny County and 8% in Philadelphia), and that you're supposed to do it through your yearly income tax return, PA-40.

So. On the PA-40 Pennsylvania Income Tax Return, which you file yearly (I think) if you're over 18, line 25 says "USE TAX. Due on internet, mail order or out-of-state purchases. See instructions."

(I think) These are the instructions: http://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/2017/2017_pa-40in.pdf

On page 20, it says "If you purchase [taxable items] for which the seller does not charge and collect sales tax...you are personally responsible for [paying] the use tax directly to
the PA Department of Revenue."

They then list "digital products" as an example of a taxable item. That's kind of vague though. They also say to look at the Retailer's Information Guide (REV-717) if you're not sure.

(I think) this is the guide: http://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Documents/Sales-Use%20Tax/rev-717.pdf

On page 18 (labeled page 16 because they're bad at formatting), just above the section 5 header, it says:
**T (for taxable) - Video games including downloads, subscriptions and streaming
services, consoles, and equipment

Steam games are downloads, and Steam doesn't charge tax, so I guess they're taxable.

Right now, you can see your Steam Purchase History if you go to Account Details from the drop down menu in the top left.

I'm going to write it in on my income tax return. If I get a phone call from the Department of Revenue, I'll add a post here, but they probably don't care.

Edit: I have no idea if gift cards are included. Maybe the person who originally purchased it payed the tax on it?

[cSg|mc-Hotsauce]

Steam does not charge tax unless Valve has a physical presence in that state.

Washington, Illinois and Wisconsin are the only ones I know of.