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Pomona California Form 1040 (Schedule C-EZ): What You Should Know

Use Sales and Gross Receipts to figure tax. Use Gross Receipts to figure sales tax. 2 If sales were: Total gross price. If we have sales tax information, we will return your sales tax. The CDTFA-401-INST will return us as “Non-resident seller.” 3 If: Total taxable gross income or gross adjusted gross income. If we do not have sales tax form 886 or CDTFA-401-INST, we will return you as “Non-resident seller” because we do not have to charge sales tax. If we do have sales tax form 886 or CDTFA-401-INST, we will return you as a “resident seller.” 4 Use “Use Tax Rate” and “Use Tax Table.” Use the “Use Tax Rate” as the “income tax rate,” and use it as the basis of “total tax.” 5 Use “Use Tax Table.” Use the Tax Table instead of the “Use Tax Rate.” 6 In computing tax, use the formula: 1 plus 12 plus the total of: 1 plus 15.50 plus the gross sales or “total gross sales” from the sales, or the amount by which the net sales from the same days and the same calendar month was over 10.00 (if the same day occurs more than 30 days apart), 5 x “total gross sales.” If the last 10.00 is less than 10.00, then use 10.00. 7 Use “Receipt of Tax Payable” (RPT) or “Use Tax Return”. Use RPT, whether you paid an itemized or a non-itemized tax. 8 Use “Other Business Entity.” You may be responsible for filing additional information under the “Additional Federal Tax” column, but if so, you should see that for information on filing. 9 Use “Additional Tax on Other Business Entity.” You are only responsible for filing the Additional Federal Tax if you are a “nonresident seller” and you include on your Form 1040 the sales tax rates and amount you are paying; the only other business purpose that you are using the Additional Federal Tax for is for insurance purposes for sales and use taxes paid by insurers, brokers, and managers, and you are withholding taxes at the amounts and on the time periods described.

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