"Other State Income" for my out of state LLC?

[meredith289]

[Tax Year 2019] I started a film festival in 2019 and it operates as a single-member LLC registered in Michigan. I live in New York, but the festival took place in Michigan.

Do I select "YES, I earned income in states other than New York", because I earned revenue through the Michigan-registered LLC?

[ColeenD3 · Accepted solution]

I am assuming that you are a single member LLC and have chosen to be a pass-thru entity, that meaning you are not electing to be taxed as a Corporation.

Yes, you did earn money in other states. While the LLC is valuable in that it can protect you personally, you will still pay taxes as an Independent Contractor. You will be subject to Federal and State taxation unless you are under the filing requirement for that state.

 NY taxes its residents' income no matter where they earn it. They will, however, give you credit (against your NY tax) for any tax you pay to another state on the same income. 

[Anonymous]

you need to file in two states.  You earned income in Michigan (the state the LLC was formed in is irrelevant)  so you owe taxes to Michigan for the income generated there.     In TT the non-resident state return needs to be completed first so the credit for non-resident state tax is computed correctly.  Then you can do your resident state.   

[debronkart]

Thanks, @ColeenD3 - my situation is nearly identical, but I hope you can confirm for my specifics.

• I too am a single-person pass-through LLC. 
• I'm a public speaker so of course last year it was all virtual.
• Companies in these states paid me. Do I need to enter them as Other States?  TN, MI, MT
• Also, a NY company paid a down payment on an overseas event that was postponed. 

I reside btw in New Hampshire, which has no income tax per se but I do pay a business profits tax. 

Thank you so much!

[ColeenD3]

You always have to look at the Department of Revenue for each state. Every state has different rules about nonresident filing requirements. Some have a minimum amount you need to make, some don't. TN has no state income tax on earnings as well.

MI DOR

MT DOR

NY DOR

[debronkart]

Thanks for the rapid reply!  I'll have to see if I can find what I need in those links - in general it's been really hard to dig it out, and I'd hoped maybe the wizards here might already know, based on the message at top of thread. Wish me luck, eh ...

[debronkart]

For others, I'll add what I found (being really new to all this) when I went to the state sites. The key is to search "nonresident" on each state's site. If that doesn't help, try googling this with your desired state name, e.g.:
"who must file nonresident return michigan"

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NY nonresident page: wow, this seems unlimited - any amount.

"You must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you:

• were not a resident of New York State and received income during the tax year from New York State sources, or 
• moved into or out of New York State during the tax year."

Note,  the linked form page says "We've partnered with the Free File Alliance again to offer you more options to e-file your New York State income tax return—at no cost!" so it may not be necessary to buy the NY return from TT.

It's a fillable PDF. Requires info from completed 1040.

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Michigan says to file if "You had income earned in Michigan and/or attributable to Michigan."  But they don't say what "attributable to" means.  @ColeenD3 does it mean "paid by someone located in MI"?   I had one $4000 payment from a Michigan non-profit. 

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That's all for tonight... grateful for this forum and I hope this helps another