MarilynG1
Expert Alumni

State tax filing

For hobby income, you can't claim expenses over the amount of your income, so basically you break even; you're just reporting.  If you have less expenses than income, you'll pay tax on that income. 

 

Here's more info on Hobby and Other Types of Income.

 

As far as what a state considers 'state source' income, it is income derived either from working in that state or working for a business in that state.  So if you were a remote employee of a California firm and lived in Ohio, for example, then you would file a Non-Resident return to CA for your 'CA source' income. 

 

In your case, the source of your business is your app, produced and developed in your state, in your home office. 

 

Here's more info on Why Would I File a Non-Resident Return?

 

@ahmadka2 

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