All I know is I nearly had a heart attack when I saw the internet purchases mentioned on my state (IL) income tax form. The paperwork is gonna be a nightmare. Don't quote me, but they want several figures-like the amount purchased that was taxed (in state and out of state) and the amount that wasn't taxed. The strange part is that some other states have charged me tax-that will have to be figured out.
I have started keeping better records, but now I purchase mostly on line and out of state.
I was lucky to find a form ST 44 and was instructed to write "amnesty" on the top of the page and that covered all my purchases made from 2004 thru Dec 31, 2010. I followed an income chart and paid $15=good deal. Unfortunately the state didn't know what to do with the form (doesn't that just figure) they called me (nice lady) and I had to explain it to her and further referred them back to the state of IL web site.....does that mean no one else took advantage of the form? That's a shame
Regardless of the internet purchase thing, IL has raised the state income tax percentages and along with having to claim my purchases I have increased my withholding so I don't get caught owing money....since most states are in a money crunch I'd prolly advise everyone to think about increasing withholding
Sorry for going on so much about this. I only mentioned all this in case any of your states offer any kind of "amnesty" program and to warn that state income taxes in any state could be on the rise and to handle deductions appropriately. Even if your state doesn't mention internet purchases yet, once a state finds a way to make more revenue-they'll all hop on the bandwagon. Whether I like it or don't like it-I never ever argue with the IRS or state IRS-they are bigger and badder than me