Can TaxCloud help with my State Income Taxes?
TaxCloud's services are focused on reporting and filing state sales taxes.
- With that said, we do not support any type of federal income tax reporting or filing for the IRS.
The Differences Between Income Tax and Sales Tax
- Income tax is a direct tax paid by individuals on their income, sales tax is a pass-through tax charged on a sale
- Individuals pay federal and (unless you’re lucky enough to live in a state without it) state income tax. Sales tax is administered at a state level only, and consumers who live in states with a sales tax pay it to merchants at the point of sale. Merchants, in turn, remit sales tax collected to the state
- Essentially all income-earning individuals have to deal with income tax; only product sellers or people who sell certain services have to deal with collecting and remitting sales tax back to the state