Taxing Times - Volume 11 - Issue 10 - October 2019

Sep 19, 2026

Taxing Times delivers client-focused tax guidance, highlighting practical strategies for managing debt and understanding tax implications in everyday financial decisions. Key sections examine why student loans can be handled with patience, the impact of sales tax rules after Wayfair and changing nexus standards for e-commerce, and scholarship taxation under the “kiddie tax” framework. The issue emphasizes clear eligibility rules and thresholds that affect whether income is taxable and what forms may be required.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages4

Reading Time2 min

AccessFree to download

Special Points of Interest

Building wealth

Call-in times

Referrals

Funnies and more

Inside This Issue

A “Dangerous” Financial Strategy That Isn’t So Dangerous

What You Need to Know About Sales Taxes After Wayfair®

A Full Ride Might Not Be Free

A Cabbie and a Nun

What I’m Reading…

Looking for Someone You Can Rely On?

LINDSEY & WALDO CERTIFIED PUBLIC ACCOUNTANTS “You see the numbers, we look for the opportunities.” Taxing Times S P E C I A L P O I N T S O FI N T E R E S T : • Building wealth • Call-in times • Referrals • Funnies and more I N S I D E T H I S I S S U E : A “Dangerous”Financial Strategy That Isn’t So Dangerous What You Need to Know About Sales Taxes After Wayfair® A Full Ride Might Not Be Free A Cabbie and a Nun What I’m Reading… Looking for Someone You Can Rely On? 1 1 2 2 3 4 Dedicated to helping our clients keep the money that belongs to them through a focus on tax. V O L U M E 1 1 , I S S U E 1 0 O C T O B E R 2 0 1 9 A “Dangerous” Financial Strategy That Isn’t So Dangerous As a general rule, most debt isn't helpful to you. In fact, I could probably state that more clearly: debt can be a massive load on your financial future. And, of course, that is especially true of student loans. Now, much can be written about the explosion of student loan debt over the last decade (and has), but today I wanted to posit an idea to you if you carry these kinds of loans. It's perhaps a"dangerous" idea, but it is the kind of financial thinking that, when followed, can build habits of wise investment and careful risk-taking that often mark a wealthy, successful life. The media is certainly good for this: bringing awareness to the rising, crushing wave of student debt. In fact, the average student in the Class of 2016 has $37,172 in student loan debt. And while this is a big number, it doesn't have to cripple your financial future. In fact, some students may be better off not taking their parents' advice on how to get out of debt. Because unlike many other forms of debt, student loans are usually best when paid as slowly as possible. Continued on page 3 􀂮 What You Need to Know About Sales Taxes After Wayfair® Six years before Google was founded, the U.S. Supreme Court, in Quill Corp. v. North Dakota, ruled that a company had an obligation to collect and remit sales taxes to a state if it had a physical presence in that state, referred to as nexus. Physical presence was generally created wherever a company had employees, salespeople, made deliveries, or stored inventory. When a brick-and-mortar store sells to a customer, sales taxes are a given in the 45 states that impose a sales tax. What the court couldn’t envision was a world in which a large, and growing, portion of retail sales would involve clicks and delivery vans instead of malls and storekeepers. According to the U.S. Department of Commerce, on-line sales now exceed ten percent of retail sales. As e-commerce grew, the coffers of states relying on sales taxes suffered. Keenly aware of the millions of dollars lost, state governments have scrambled to update their tax laws to force online retailers to collect and remit sales taxes. Many states, including South Dakota, expanded their nexus definition to include economic nexus. The theory is that if you sell enough stuff to consumers or businesses in our state, you have economic nexus. On June 21, 2018, the U.S. Supreme Court handed down a decision in South Dakota v. Wayfair et al., which said it agreed. The ruling, however, doesn’t mean you necessarily need to collect sales taxes on every order you ship. Halloween Humor 4 Call-in Times 4 The court’s ruling is clear that the state won, in part, because its law took steps to lessen the burden on small(er) businesses. South Dakota’s law exempts e-commerce businesses that have sales less than $100,000 worth of products and ship fewer than 200 orders into the state. Continued on page 2 􀂮 P A G E 2 T A X I N G T I M E S V O L U M E 1 1 , I S S U E 1 0 A Full Ride Might Not Be Free In many, if not most, college scholarships are not taxable. However, when they are, the income is subject to the “kiddie tax” rules, the kiddie tax taxes unearned income at estate and trust tax rates, which can reach 37% fai

FAQs

Why does the newsletter say student loans can be handled differently from other debt?

It emphasizes that, unlike many other forms of debt, student loans are usually best paid as slowly as possible, allowing time for wise investment and careful risk-taking.

What changed for sales tax obligations after the Wayfair decision?

It confirmed that states can require online retailers to collect and remit sales taxes based on “economic nexus,” even without a physical presence, while providing relief for smaller businesses under certain thresholds.

When can college scholarships become taxable under the kiddie tax rules?

Scholarships used for qualified tuition and related expenses are generally excluded from gross income, but amounts used for room and board or non-qualified purposes are taxable. If the recipient falls under kiddie tax eligibility criteria, additional tax may apply.

Sep 19, 2026

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