Tax free when using Edge Credit..?

KongaKing

KongaKing

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Sorry for the dumb question. It's been a long time since I saved up credit and used it. I usually use it on the spot

So I was wondering if I saved up credit and use it for something later on, is it still tax free? Like if I have $50 in credit on my edge, and go buy metroid, it would be $49.99?

Also another dumb question but what if you put some money down for a game, then go pay it off in full, using credit. You are only taxed on the $5 you put down in cash, right?

Trying to figure out if rock band, paid using at least 50% credit is better than amazon tax free an free shipped, since I'd get it release day

Thanks for info
 
The Edge card works just like you were paying with trade ins at that time. It realy depends on the tax laws where you are making the purchase.
 
In wisconsin when I worked at a game store, store credit transactions were tax free.

In michigan, when I paid off halo 3, he took 75 dollars or so from my credit, to pay for tax. It might just be a pre-order thing, but idk. If it charges me that when I pick it up, i'll ask.
 
In Texas, it works just like you said OP. Although I don't see how it would be different in other states. Since you're trading something, there shouldnt be a sales tax.
 
Last time I bought something from GS with the lil bit of cred I had left at their store, I think I got charged tax, though I could swear I've made other purchases on credit before and was not charged one cent of tax. Maybe something changed?

I'm in Pennsylvania, btw.
 
I would not be surprised in the least if Gamestop charged tax to unsuspecting fools and just kept the difference. A free $3-5 on transactions sounds awesome to them..
 
Was at Gamestop yesterday and overheard a manager talk to tech support about what you're asking. Basically said something like customers who paid pre-orders in full with credit (or something to that extent) were essentially getting games tax-free.
 
It works almost always this way, at least at every gamestop I've ever been to.

You purchase a game for $19.99. They tell you the total with tax (say $21.19). You give them your edge card with credit. It only deducts $19.99 off the card and does not charge you tax.
 
In Rhode Island the state of the greedy and more greedy, they tax you on just about everything. Heck I think they even tax you on food if it's not bought in a market specifically. I know that at Gamecrazy I always pay taxes and pretty sure the same happens at Gamestop.
 
It absolutely did charge me more than $70 from my store credit to pre-order halo 3 in full. It's on my reciept. I bet gamestop just hopes people won't notice and takes the difference. Greedy Bastards.
 
Seems in iowa, you don't get charged tax on the credit transaction. If a game is 19.99 and you use all store credit only the game cost is deducted. If you pay money for part, that part is taxed. I'd wager it's because you're not actually purchasing anything, a.k.a. no money actually trades hands. You're simply trading similarly valued items. What's the state gunna do, take .60 in GS credit. :) I suspect that's how Iowa law is, other states may vary no doubt. I give it a few more years before some enterprising young legislator realizes they could rake some more tax on these transactions.
 
It is not gamestop's fault, jer7583.

As others have said, it is 100 percent completely based off the state's tax laws. Some states consider bartering (IE, trade) a form of payment and therefore tax it. Others consider it a trade of materials for other materials and do not tax it.

Totally based on the state you live in and their laws.
 
I would say it's gamestop's fault since gamecrazy did not add tax when my metroid prime 3 was paid off in full with store credit there. Another local used store also does not tax trade transactions. They're the only one that does it in my area.
 
I bought a Wii with 100% store credit and was charged tax (in California). I don't think Game Crazy charged tax when I used their credit, though (although I'm not absolutely sure).
 
Hrm interesting. I remember doing a trade 4 get one free for a gamecube game a few years ago and I got 1 cent back, because it was tax free and I got 50 in credit, the system said. I got Strikers a month ago or so and in my brain I think I got charged tax, but I dont recall. So I guess i'll just have to ask when I buy something and if it is tax free, make sure it rings up that way
 
No tax in Arizona. I paid off my Halo 3 preorder. I got the legendary edition and used $65.00 in credit. My total came to $135.25. Tax is 8.1% in Pima County, Arizona, so if I was taxed in full it would have been $140.52. I was only taxed on half because I only paid for half.
 
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