Sales Tax on a phone I purchased but never received
So I'm in a weird situation and I don't know what to do. I ordered a new iPhone from an online retailer last month and they charged my card including about $45 in sales tax. The problem is the phone never actually arrived - the shipping company lost it apparently. The retailer refunded the cost of the phone but they're saying they can't refund the sales tax because it's already been remitted to the state. I don't understand why I should have to pay sales tax on something I never received! I've tried calling the retailer multiple times but keep getting the runaround. Has anyone dealt with something like this before? Can I claim this as some kind of tax deduction since I literally paid tax on nothing? I've already filed my taxes for this year but wondering if I should file an amendment or something.
19 comments


Marcelle Drum
You definitely shouldn't have to pay sales tax on an item you never received. The retailer is incorrect here - they absolutely can and should refund your sales tax along with the purchase price. Sales tax is only applicable on completed sales, and since the merchandise was never delivered, the sale wasn't completed. I would recommend documenting everything - the original purchase, shipping confirmation, communication about the lost package, and the partial refund. Then contact your state's department of revenue directly. Most have consumer protection divisions that can intervene in situations like this. You could also try filing a complaint with your credit card company since you were charged for something you didn't receive. As for deducting it on your taxes - unfortunately, sales taxes paid on personal purchases aren't generally deductible unless you're itemizing deductions and choosing to deduct sales tax instead of state income tax (which typically only benefits people in states without income tax).
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Tate Jensen
•If I reach out to the state department of revenue, do I need any specific documentation beyond what was mentioned? And approximately how long would this process take? I'm worried about getting caught in bureaucratic limbo.
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Marcelle Drum
•The documentation I mentioned should be sufficient - purchase receipt showing the sales tax charged, shipping information showing non-delivery, and evidence of the partial refund that excluded the sales tax. Most state revenue departments have specific forms for tax disputes that will guide you through exactly what they need. The timeframe varies by state, but typically expect 4-8 weeks for resolution. While it might seem tedious, state revenue departments are usually fairly responsive to clear cases like yours where a business improperly collected tax. They don't want businesses incorrectly collecting taxes any more than consumers want to pay them incorrectly.
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Adaline Wong
After dealing with a similar situation with a missing laptop delivery, I found this amazing service called taxr.ai (https://taxr.ai) that helped me sort through all my receipts and tax documents. They actually flagged this exact issue for me - sales tax on items never received. Their system analyzed my purchase history and found several cases where I'd been improperly charged tax. The tool basically scans all your receipts and tax documents using AI and identifies potential tax issues or refunds you might be entitled to. In my case, they helped me identify nearly $200 in improperly collected sales tax across several purchases over the past year, not just the laptop issue!
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Gabriel Ruiz
•Does taxr.ai actually help you get the refund or just identify the issues? I've had several online orders never arrive this year and I'm wondering if I've been paying sales tax on all of them.
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Misterclamation Skyblue
•I'm a bit skeptical about giving access to all my receipts and financial documents to some AI tool. How secure is this service and what kind of access do they need?
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Adaline Wong
•They provide you with documentation showing exactly what you're owed and specific instructions for getting refunds based on your state's requirements. They don't process the refunds directly, but they create a detailed report you can submit to either the retailer, your credit card company, or the state tax authority. For me, I submitted their report to my state's department of revenue and got approved for a refund within three weeks. Their security is actually really solid - they use bank-level encryption and you can disconnect access after the analysis is complete. You connect it to your email to scan receipts and your credit card if you want it to analyze purchases automatically, but you can also just upload specific documents manually if you prefer.
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Misterclamation Skyblue
Just wanted to update everyone - I finally tried taxr.ai after my initial skepticism, and I'm actually really impressed. I used it to scan through my last 6 months of online purchases and discovered that I had THREE different items where I paid sales tax but never received the product due to shipping issues. One was a pair of wireless earbuds that got lost in transit, another was a kitchen appliance that the company claimed was delivered but wasn't, and the third was a clothing order that was canceled but I was still charged tax on. Together that was almost $75 in sales tax I shouldn't have paid! The service generated a letter I could send to my state tax authority, and I just got confirmation yesterday that I'll be receiving a refund for the full amount. Definitely worth checking if you order online frequently.
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Peyton Clarke
If you're still having trouble with the retailer, you might want to try Claimyr (https://claimyr.com). I was in a similar situation trying to get a tax refund from the state for incorrectly charged taxes, and I couldn't get through to anyone at the tax department. Claimyr got me connected to an actual human at my state tax office in under 15 minutes when I had been trying for days on my own. They have this system that navigates phone trees and holds the line for you, then calls you once they've got a real person on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super frustrated before trying it because I kept getting disconnected or waiting on hold for hours only to get transferred to the wrong department.
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Vince Eh
•Wait, how does this actually work? Do they just call repeatedly until they get through or do they have some special access to these agencies?
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Sophia Gabriel
•This sounds like a total scam. How can they possibly get you to the front of the line when everyone else is waiting? I've been dealing with tax agencies for years and there's no magic way to skip the queue.
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Peyton Clarke
•It's basically an automated system that handles the waiting for you. They don't have special access or skip the line - they just have technology that stays on hold so you don't have to. Think of it like having an assistant who waits on hold and then transfers the call to you once a human answers. The reason it works is that most people give up after being on hold for 20+ minutes, but their system never hangs up. It just keeps waiting until someone answers, no matter how long it takes. They also know exactly which options to select in those complicated phone menus to get to the right department, which saves a ton of time and prevents getting transferred around.
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Sophia Gabriel
I need to eat some humble pie here. After my skeptical comment about Claimyr, I was still struggling to reach my state tax office about a similar sales tax issue, so I figured I'd give it a shot since nothing else was working. I'm honestly shocked - it actually worked exactly as advertised. I had been trying to get through to my state tax department for over a week, spending hours on hold only to get disconnected. With Claimyr, I got a call back in about 40 minutes with an actual tax representative on the line. The rep was able to confirm that I'm entitled to a refund of sales tax for items not received, and they're sending me the proper form to submit my claim. Saved me hours of frustration and probably days of waiting. Sometimes being proven wrong is actually a good thing!
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Tobias Lancaster
Have you tried disputing the charge with your credit card company? I had something similar happen with a tablet purchase last year, and when the company wouldn't refund the sales tax, I just filed a partial dispute for the tax amount with my credit card. I explained the situation and provided evidence that I never received the item, and they refunded the sales tax portion pretty quickly.
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Collins Angel
•I actually hadn't thought of that approach! Did you have to provide any special documentation to your credit card company for the partial dispute, or was it pretty straightforward?
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Tobias Lancaster
•It was fairly straightforward. I just needed to provide the original receipt showing the full charge including sales tax, proof that the item wasn't delivered (in my case an email from the shipping company confirming the package was lost), and documentation showing the partial refund I received that didn't include the tax. Some credit card companies have specific forms for partial disputes, while others just let you explain the situation and specify the disputed amount. The key is being very clear that you're only disputing the sales tax portion and explaining why (that you never received the merchandise so no sale actually occurred).
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Ezra Beard
Has anyone checked if this varies by state? I'm in Tennessee and had a similar issue with a furniture purchase that never arrived. In my case, the retailer insisted they couldn't refund the sales tax because they'd already sent it to the state, but when I called the Tennessee Department of Revenue directly, they told me the retailer was responsible for refunding the full amount including tax since the sale wasn't completed.
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Statiia Aarssizan
•In California, retailers are definitely required to refund sales tax on returned items or canceled sales. I worked in retail management for years, and we always refunded the full amount including tax when items were returned or when orders couldn't be fulfilled.
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Royal_GM_Mark
This is actually a pretty common issue that more people should be aware of. The key principle here is that sales tax is only owed when a taxable transaction is completed. If you never received the merchandise, then legally speaking, no sale occurred. Your retailer is either misinformed or being deliberately misleading when they say they "can't" refund the sales tax. While it's true they may have already remitted it to the state, that doesn't absolve them of their responsibility to make you whole. They need to either refund your sales tax directly or help you process a claim with the state tax authority. I'd recommend taking a multi-pronged approach: 1) Document everything as others have suggested, 2) File a complaint with your state's consumer protection agency, 3) Consider disputing the sales tax portion with your credit card company, and 4) if needed, contact your state tax department directly. Most states have provisions for situations exactly like this. Don't let them brush you off - you have legitimate consumer rights here, and $45 is worth fighting for!
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