If you collect sales tax from buyers in New York and sell clothing, you’re probably already familiar with the New York Schedule H form. This is the form where, when filing your New York sales tax return, you report sales of clothing and footwear eligible for New York’s clothing sales tax exemption. (What exemption? Clothing and footwear sold to buyers in New York under a $110 purchase price are exempt from New York’s 4% state tax, and some New York local taxes. You can read more about the New York clothing sales tax exemption here.)
Previously in TaxJar, we lumped your clothing and footwear sales together in with your other New York sales. But customers asked us if we could add more to the New York state page in TaxJar to show exactly what needed to be filed on Schedule H, and we are always happy to improve our reports to make your life easier.
Important Note: The schedule H on the New York state page is only available to sellers using our new Product Categorization feature and TaxJar SmartCalcs Sales Tax API users at this time, with more availability coming soon. If you sell on a different shopping cart or marketplace and want to be notified when we support Schedule H, send us an email with your request at firstname.lastname@example.org.
How do I use TaxJar to file my New York Schedule H form?
We have now incorporated Schedule H with your TaxJar New York state sales tax report.
Previously in TaxJar, your New York state sales tax report looked like this (notice there’s no Schedule H):
To see the new Schedule H, first, you need to login to TaxJar, and visit your “Exemptions” tab:
From there, scroll or use the search bar to find the clothing items you sell, and categorize them as “clothing.”
You can learn more about how and why to categorize your products in TaxJar in this short video:
Once you have categorized the clothing and footwear you sell, when you visit your New York state sales tax report, you’ll see that your report now looks like this:
Now TaxJar shows you the precise sales tax amounts you need to file Schedule H on exempt clothing and footwear in New York.
New York Schedule H Support Makes it Easier for New York Taxpayers to AutoFile
Good news! This also means that you will be able to sign up to AutoFile your New York sales tax return without running into any roadblocks.
In the past, if you had a large number of non-taxable or otherwise exempt items, TaxJar required that you marked those items as taxable in order to AutoFile. Now, though, once your products are categorized correctly you’ll be able to enroll in AutoFile without hitting any snags. Try enrolling in AutoFile today and let TaxJar handle your sales tax filings for you!
For a quick overview of how TaxJar now handles New York Schedule H, check out this demonstration by TaxJar engineer Justin Cypret:
Do you have questions or something to say about filing New York schedule H? Start the conversation in the comments!