topic Multi-state teletherapy state income tax question. in State tax filing

Multi-state teletherapy state income tax question.

SCORP2 — Wed, 05 Feb 2025 22:12:01 GMT

Licensed mental health therapist filing income as a LLC/S-corp (1 owner)

I do teletherapy with clients located in Georgia and Florida, fully licensed in both states, I live in Georgia.

Do I divide state income by state, or pay it all to Georgia?

Re: Multi-state teletherapy state income tax question.

Vanessa A — Wed, 05 Feb 2025 22:15:57 GMT

No, you do not divide it. Since Florida does have has individual income tax (even as an S-Corp), all of your income will be taxed by GA, as your resident state. You will not need to divide the income up as there is no reporting requirement of this income in FL.

Re: Multi-state teletherapy state income tax question.

SCORP2 — Wed, 05 Feb 2025 22:43:31 GMT

I know Florida doesn’t have income tax. That’s why I was hoping that my Florida portion of my income would be tax-free on state level.

Re: Multi-state teletherapy state income tax question.

MindyB — Wed, 05 Feb 2025 22:52:14 GMT

Unfortunately, as @Vanessa A stated, your resident state will indeed tax you on all of your income, regardless of the source. ‌Without a credit for taxes paid to other states, there isn't an opportunity to reduce your GA income for work sourced from FL.

You can read more about this here: Residency Filing Requirements

Re: Multi-state teletherapy state income tax question.

SCORP2 — Thu, 06 Feb 2025 03:30:19 GMT

Based on this information only, do I need to file a Florida state return at all then?

Re: Multi-state teletherapy state income tax question.

MindyB — Thu, 06 Feb 2025 05:04:58 GMT

No, there is no Florida income tax for a flow-through entity for you to file. They have a corporate income tax, which you are not required to file.

Here is more information about the Florida Income tax: Who Must File?

Based on the information you provided, you are not required to file this and thus have no Florida obligation. Only S-corporations that pay federal income tax on Line 23c of Federal Form 1120S must file a corporate tax return in Florida. Single-member LLCs with an individual single member don't have an obligation.