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I think it varies from state to state, so check with your state's Dept of Revenue.
When I was an IC before, if I transcribed for an entity outside of my state, I did not have to charge a sales tax, but when I transcribed for anyone in my state, I did... but there were exceptions to that too, which included if the entity was a nonprofit organization or nonprofit hospital, thus making them exempt from paying sales tax. I still had to have a sales tax ID and file the state tax forms, but listed my income on the lines where they had out-of-state income and nontaxable income. I worked for a nonprofit clinic and didn't charge sales tax, and also did some freelance interviews, which I did tack on sales tax.
It's been a several years since I had to do this, so I may not remember exactly, and also I know in my state that over the past several years they've changed some tax codes regarding how ''services'' are taxed, but I haven't researched that since the changes as I don't do any IC work inside my state currently, so I don't know if they would or wouldn't affect MT services (probably considered under clerical).
I'd check with your state and/or your accountant, you should be able to find out about the laws and codes for your state. Good luck. |
What I remember about sales tax...sm - Leavin' the Q
