Idaho 850 U Template

Idaho 850 U Template

The Idaho 850 U form is a document used to report and pay the use tax owed on items purchased without sales tax in Idaho. This form is typically utilized when the use tax owed is less than $50, or for individuals making significant one-time purchases, such as jewelry or artwork. Completing this form ensures compliance with state tax regulations and helps keep accurate records of untaxed purchases.

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Idaho 850 U Preview

OR850-U

Idaho Self-Assessed Use Tax

F

 

M EFO00143

Worksheet and Return

 

01-02-09

 

Use Form 850-U to report and pay the use tax you owe. If you owe less than $50 in use tax, you will generally use this form. However, you may also use this form if you’re an individual (non-business) and you make a one-time large dollar purchase of items such as jewelry, artwork, or an aircraft. You can report single or multiple transactions. If you pay by check, please attach your check to the return.

What is use tax? Use tax is a tax on goods that you put to use or store in Idaho. If you have not paid sales tax on these goods, you owe use tax (unless the items are held for resale or an Idaho exemption applies). If Idaho or another state’s sales tax is added to the purchase price, you do not owe use tax. The use tax rate is the same as the sales tax rate.

For example, if you buy merchandise through the Internet, over the telephone, or from mail-order catalogs, and sales tax is not added to the price, you are responsible for paying the use tax directly to the Idaho State Tax Commission. Also, if you travel outside the state and purchase untaxed merchandise that is brought or shipped to your Idaho home, you owe use tax.

Use the worksheet below to track your untaxed purchases. Keep this worksheet for your records.

Column 1. Enter the date you purchased the untaxed goods. Add the purchase date to the Tax Period ield on the 850-U. If you made multiple purchases, enter the dates of your irst and last purchases.

Column 2. Enter a description of the goods purchased.

Column 3. Enter the purchase price of the goods from Column 2. Total Column 3, and enter amount on Line 1 of 850-U.

Column 4. Multiply the purchase price in Column 3 by the use tax rate* at the time of purchase. Total Column 4, and enter amount on Line 2 of the 850-U.

Use Tax Worksheet

Column 1

Column 2

Column 3

Column 4

Purchase Date

Description of Goods

Purchase Price

Column 3 x rate*

 

 

Total Purchases Subject to Use Tax

»

 

 

 

* Rate if purchase date is:

 

 

 

 

 

 

 

 

 

Oct. 1, 2006 or after, the rate is 6% (.06).

 

 

Total Use Tax Due »

July 1, 2005 - Sept. 30, 2006, the rate is 5% (.05).

 

 

May 1, 2003 - June 30, 2005, the rate is 6% (.06).

 

 

 

 

April 30, 2003 or before, the rate is 5% (.05).

 

 

 

 

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OF 850-U

Idaho Self-Assessed Use Tax Return

 

 

 

 

R EFO00143 (01-02-09)

 

 

 

 

 

 

M

 

 

 

 

 

 

Name

Address

Social Security Number or Federal ID Number

 

Month

Year

Month

Year

Tax Period

__ __ / __ __ __ __

to __ __ / __ __ __ __

City

State

ZIP

1. Amount Subject To Use Tax

$

2. Use Tax Due (from worksheet)

$

My check is attached

 

 

 

(

)

Signature

 

Date

 

Phone number

Mail to: Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410

Essential Queries on This Form

What is the Idaho 850 U form used for?

The Idaho 850 U form is utilized to report and pay the use tax owed on goods that have been purchased and used in Idaho. This form is generally required when the use tax owed is less than $50, but it can also be used for larger one-time purchases by individuals, such as jewelry or artwork.

Who needs to file the Idaho 850 U form?

Individuals who have made purchases subject to use tax and have not paid sales tax on those goods are required to file this form. This includes purchases made online, through mail-order catalogs, or from other states. If the goods are held for resale or qualify for an exemption, the use tax does not apply.

What is use tax?

Use tax is a tax imposed on goods that are stored, used, or consumed in Idaho when sales tax has not been paid. The rate of use tax is equivalent to the sales tax rate. For example, if an individual buys merchandise without sales tax being added to the price, they are responsible for paying the use tax directly to the Idaho State Tax Commission.

How do I complete the use tax worksheet?

To complete the use tax worksheet, follow these steps:

  1. Enter the purchase date of the untaxed goods in Column 1.
  2. Provide a description of the goods in Column 2.
  3. Input the purchase price of the goods in Column 3.
  4. Multiply the purchase price by the applicable use tax rate and enter the result in Column 4.

Finally, total the amounts in Column 3 and Column 4, and report these totals on the main form.

What are the use tax rates?

The use tax rates vary based on the date of purchase:

  • For purchases made on or after October 1, 2006, the rate is 6%.
  • For purchases made between July 1, 2005, and September 30, 2006, the rate is 5%.
  • For purchases made between May 1, 2003, and June 30, 2005, the rate is 6%.
  • For purchases made on or before April 30, 2003, the rate is 5%.

How do I submit the Idaho 850 U form?

After completing the form and ensuring all information is accurate, attach your check if you are paying by that method. Mail the completed form to the Idaho State Tax Commission at the following address: PO Box 36, Boise, ID 83722-0410.

What should I keep for my records?

It is advisable to keep a copy of the completed Idaho 850 U form, along with the use tax worksheet, for your records. This documentation may be necessary for future reference or in case of an audit.

Misconceptions

Here are six common misconceptions about the Idaho 850 U form:

  1. Use tax only applies to businesses. Many people believe that only businesses need to worry about use tax. In reality, individuals who make large purchases, such as jewelry or artwork, may also need to file this form.
  2. Use tax is only for items purchased out of state. While it's true that use tax applies to out-of-state purchases, it also applies to items bought online or through catalogs where sales tax wasn't charged.
  3. If I didn’t receive a bill, I don’t owe use tax. Just because you haven't received a notice from the state doesn't mean you’re exempt. If you’ve made untaxed purchases, you are responsible for reporting and paying use tax.
  4. All purchases are subject to use tax. Not all items require use tax. If you’ve paid sales tax at the time of purchase or if an exemption applies, you may not owe use tax on those items.
  5. It’s too complicated to fill out the form. The Idaho 850 U form is straightforward. It provides clear instructions and a worksheet to help you track your purchases and calculate the tax due.
  6. Use tax is a one-time payment. Use tax can accumulate over time, especially if you make multiple untaxed purchases. You may need to report and pay use tax regularly, depending on your buying habits.

Understanding these misconceptions can help ensure compliance and avoid unexpected tax liabilities.

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