As someone who just went through this exact situation last month, I can confirm what others have said - you'll likely pay the difference to your home state when you register. I bought a car in Nevada (6.85% sales tax) while living in California (varies by location, mine was 9.25%). What I learned that might help you: some states have reciprocal agreements that make the process smoother, but most don't. California made me pay the full difference (2.4% in my case) at registration. However, the dealership in Nevada was super helpful - they prepared all the paperwork I'd need for California DMV and even gave me a checklist of required documents. One tip: call your home state's DMV ahead of time to confirm their exact policy and what paperwork you'll need. Some states are pickier about proof of purchase price or may require specific forms. Better to know upfront than get surprised at registration!

I actually work for a state revenue department (can't say which one for obvious reasons), but I can give you some insider perspective on this. The short answer is yes, you'll almost certainly owe your home state the difference. We call it "use tax" and it's designed specifically to prevent people from avoiding their home state's tax rates by shopping elsewhere. Here's what actually happens behind the scenes: when you go to register your vehicle, our system automatically calculates what you should have paid in sales tax if you bought it here. We then give you credit for any tax you paid to another state (you'll need to provide proof), and you pay the difference if there is one. A few things most people don't realize: - We base the tax on the higher of: purchase price or book value. So if you got a great deal, you might still pay tax on the higher book value. - Some fees and add-ons that weren't taxed in the other state might be taxable here. - Documentation fees and other dealer charges can affect your total tax owed. My advice? Get everything in writing from both the selling dealer and your home state DMV before you buy. The rules can be surprisingly complex and vary significantly between states.

Just wanted to share my experience since I went through something similar last year. My grandmother left me about $52,000 and I was panicking about taxes too. The good news is that everyone here is right - you don't owe federal income tax on the inheritance itself. However, make sure you keep good records of when you received it and the amount. While you won't need to report it as income, it's good documentation to have. Also, if you decide to invest that money, keep track of your original $47,000 so you know your basis for any future investments. One thing that helped me was setting aside a small portion in a separate savings account just for any potential tax obligations on future earnings from the inheritance. That way I'm not tempted to spend money I might owe taxes on later. California doesn't have inheritance tax like you mentioned, so you're all set there too. Congratulations on the inheritance - I'm sure your grandfather would be happy knowing it's helping you!

I just went through this exact situation a few months ago when my aunt passed and left me around $30,000. I was stressed about the tax implications too, but it turns out the inheritance itself is not taxable income to you as the beneficiary. The key thing to remember is that any taxes owed by the estate would have been handled before the money was distributed to you. Since you already deposited the check, you're good to go - no additional paperwork needed for your tax return regarding the inheritance itself. However, like others mentioned, any interest or investment gains you earn from that $47,000 going forward will be taxable. I put mine in a mix of high-yield savings and some conservative investments, and I'll only pay taxes on whatever those earn, not the original inheritance amount. Keep the documentation from the estate attorney just for your records, but you shouldn't need any special forms for tax filing. California doesn't have inheritance tax, so you're all set there. Your grandfather's gift to you is truly a gift - no tax strings attached!

This thread has been incredibly helpful! I'm also a student who just got invited to Amazon Vine and was completely overwhelmed by the tax implications. Reading through everyone's experiences has made me feel much more confident about participating. A few key takeaways I'm getting: 1. Keep detailed records from day one (screenshots of tax values, spreadsheet tracking) 2. Set aside money throughout the year for potential taxes (15-25% suggestion seems smart) 3. Even amounts under $600 technically need to be reported 4. If you're serious about reviewing, treat it like a business for potential deductions One question I still have - for those of you who've been doing this for multiple years, have you ever been audited specifically related to Amazon Vine income? I'm wondering how common that is and what kind of documentation the IRS would want to see if it happened. Also, does anyone know if there are any changes coming to how Amazon handles the tax reporting for Vine? I've heard rumors that they might start issuing 1099s for smaller amounts, but I'm not sure if that's true. Thanks everyone for sharing your experiences - this community is awesome for helping navigate these confusing tax situations!

I've been in Amazon Vine for about 3 years now and wanted to share a few additional tips that might help newcomers navigate the tax side more smoothly. First, don't panic about the tax implications - yes, it's real income that needs to be reported, but if you're organized about it, it's very manageable. I use a simple Google Sheet with columns for: Date Received, Product Name, Amazon's Tax Value, and Notes. Takes maybe 2 minutes per item to log. Second, here's something I learned the hard way - Amazon's "Estimated Tax Value" can sometimes change between when you order an item and when it arrives. I always screenshot both the order confirmation AND the final tax value shown in my account after receiving the item. This has saved me during tax prep when values didn't match my initial records. Third, if you're a student with minimal other income, you might be surprised at how little tax you actually owe. In my first year, I received about $1,200 in products but only owed around $180 in additional taxes because of the standard deduction and my low income bracket. Finally, consider talking to your parents sooner rather than later if they claim you as a dependent. Mine were initially worried but became supportive once I showed them my organized tracking system and explained the potential tax impact. Having their buy-in makes tax season much less stressful. The program really is worth participating in if you enjoy writing detailed reviews - just stay organized from day one!

Has anyone actually tried setting up a Roth IRA for a minor? Which companies make this easy? My son is interested but I'm not sure where to start with the actual account setup.

Great question! I've been researching this exact scenario for my own kids. The key distinction the IRS makes is between "chores" (which are considered part of normal family responsibilities) and legitimate business activities. For your specific situation with the $20 lawn mowing, if it's just your family's lawn as part of regular household chores, it typically won't qualify as earned income for IRA purposes. However, there are a few ways to make this work legitimately: 1. Help your son start an actual lawn service business where he services multiple properties in the neighborhood, not just yours. This creates genuine self-employment income. 2. If you have a business (even a side business), you could formally employ him to do lawn maintenance, office cleaning, or other legitimate business tasks at reasonable wages. 3. Consider other entrepreneurial opportunities - many teens successfully run small businesses like pet sitting, tutoring younger kids, or selling items they make. The important thing is that the work and payment need to have genuine business purpose beyond just family chores. Once he has legitimate earned income, he can contribute up to 100% of that income to a Roth IRA (up to the annual limit of $7,000 for 2025). Keep detailed records of any payments and work performed. This early start on retirement savings is an amazing gift - compound interest over 50+ years will be incredible!

Don't stress too much about this! I accidentally selected "retail" for my SAAS business two years ago and it's never caused any issues. The business category on the EIN application isn't as critical as people make it out to be. The IRS cares more about accurate income reporting than the specific category you select during application.

Great question! I went through this exact same process last year for my SaaS startup. After researching extensively and consulting with my accountant, I selected "Service" for our EIN application. The reasoning is that SaaS businesses are fundamentally providing ongoing access to software functionality rather than selling a tangible product. Even though customers "purchase" subscriptions, what they're really buying is continuous access to your service platform. This puts it squarely in the service category rather than retail, which is typically reserved for businesses selling physical goods or one-time software purchases. The IRS views subscription-based software access as a service offering, similar to how they'd classify other subscription services like consulting or cloud hosting.