Do you have to charge tax when mowing in NJ?

Discussion in 'Network: North' started by Clear-Cut, Nov 28, 2006.

  1. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    i was reading this (it was just revised this month) "ANJ-4" form

    and from what it looks like you have to charge tax on mowing

    http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj4.pdf

    and about how much will i have to pay in taxes if my total income for the year for just cutting grass is $16,000? do i pay 6% of that?
     
  2. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Time to find an accountant
     
  3. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    yea i have been looking in the yellow pages...i just thought if i could find the answer here it will save me time and gas
     
  4. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    bump...anyone?
     
  5. davevg

    davevg LawnSite Member
    Posts: 18

  6. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    ill take that as a yes...

     
  7. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    do they charge us landscapers other tax? or do we just hav to pay the sales tax that we collect?
     
  8. davevg

    davevg LawnSite Member
    Posts: 18

    IANACPA (I am not a CPA) But you would pass the 6-7% sales tax you collected from your customers onto the state. So if you collected 16k from your customers (included the tax), your taxable personal income (Not including deductions) will be somewhere between 14,953.27 (16,000/1.07)and 15094.34 (16,000/1.06) depending on where the income came in relation to the 6-7% tax rate change. So based on the info you gave us the remitted sales tax would be between 905.66 and 1046.73.

    Talk to your accountant to make sure you are filing everything correctly. It may not seem worth it since you only made 16k. But a good accountant is worth more than their cost and will save you head-aches down the road.
     
  9. Clear-Cut

    Clear-Cut LawnSite Senior Member
    Posts: 481

    ok i got you...yea im def. going to talk to an accountant i just want an idea of what is going on before i go in there

    thanks a lot for clearing that up

    justin
     

Share This Page