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Does US Tax Apply to iTunes Purchases or Not?

by Rico on July 15th, 2008

itunes-tax.jpgThe point of Kelly the Tax Girl is that filing tax returns for every purchase made at the iTunes store “is a crazy exercise in wasted time and administrative burden.”

We’ll tentatively agree with her, since according to Pennsylvanian law, tax returns that apply to iTunes downloads need to be filed before the 20th after the month the purchase is made. So that means filing a return every month?

What kind of bureaucratic hassle is that? Wasting time and perhaps money to pay taxes on tens of dollars worth in transactions? Every month?

Not only is this quite a chore for customers, imagine all the additional paperwork, physical or virtual, that the taxmen have to deal with. Why insist on something that adds more work right?

We’re not really sure if Kelly’s tax reality applies to other US states, or other countries for that matter. All we know is that we’re a little bit more confused now. Just a reality when dealing with tax law? Or a lack of comprehension on our part? Feel free to share your tax expertise below.

POSTED IN: Lifestyle

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