NY source income seems to be defined as "income for services provided in NY State" (I was never in NY State so my services were not performed in NY State) or income from a "business that carried on in NY State." The services that I performed (i.e., drafting a document) were performed in my Utah office. I'm less certain about how "carried on" is defined by NY Tax Authority. I don't carry on business in NY State. I don't have an office in NY; I don't advertise in NY; I don't travel to NY. I had this one-time income from NY source only because of a Utah-based colleague who referred me for this small project. How do law firms with clients all over the country treat income from those clients? Are they filing state tax returns in every state in which a client is located? Or are they filing tax return in the one state in which their law office is located? Appreciate any help with this topic. Thanks.
