California Use Tax

California requires you to enter a number on Form 540, line 91 - Use Tax. If the amount due is zero, you must check the applicable box to indicate that you either owe no use tax, or you paid your use tax obligation directly to the California Department of Tax and Fee Administration. You may owe use tax if you make purchases from out-of-state retailers (for example, purchases made by telephone, online, by mail, or in person) where California sales or use tax was not paid and you use those items in California.

To enter use tax details:

1. Go to the Input Return tab.
2. On the left-side menu, select State & Local.
3. Click on CA Use Tax (Use Tax Table).
4. Check the box Compute tax using estimated use tax table for purchases less than $1,000 if applicable.
5. Enter a 1 or 2 in Use tax: 1=no tax owed, 2=paid tax directly to CDTFA, if applicable. No further entries are necessary if you make an entry here.
6. On the left-side menu, select CA Use Tax.
7. Select the Use county.
8. Enter the Total purchases subject to use tax.
9. Enter any Sales or use tax already paid to another state.

These entries will allow the program to calculate Form 540, line 91 using the tax rate of the county you select in step 7. If additional counties are needed, click the plus sign (+) near the top of your input screen to add another tab.