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Level 2
posted Apr 1, 2024 12:05:40 PM

Business in one state, live and work in another

I live in Maryland and operate a sole proprietorship. I also have a single member LLC registered in the state of NY that only does business in NY. I just started the NY business this year and have no income but about $10k in expenses including about $350 in startup costs. My question is, do I have to file in NY or, because I only had losses, just Federal and Maryland for both businesses?  Changing the business address between MD and NY doesn't seem to make a difference in TT. Thanks

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1 Replies
Employee Tax Expert
Apr 4, 2024 8:21:15 AM

Since you had no net income sourced in New York, you may not need to file a NY State income tax return.

 

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

 

  • You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction. 
     
  • You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
     
  • You want to claim any of the refundable or carryover credits available. 
     
  • You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.