Self Employment Income Tax

Taxxed — Wed, 28 Oct 2020 22:02:31 GMT

I live on the border of Idaho and Washington. I am self-employed and rent office space in WA, but live in ID. WA does not have income tax. Am I required to pay ID income taxes? Thanks in advance.

Re: Self Employment Income Tax

Hal_Al — Wed, 28 Oct 2020 23:07:32 GMT

Q. Am I required to pay ID income taxes?

A. Yes.

The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state.

Since WA does not have an income tax, you do not have a non-resident return to file. But you still have to pay tax on that income to your home state.

When you worked in a state without an income tax (e.g. Washington), there will be no credit, since there was no WA tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.

Re: Self Employment Income Tax

Taxxed — Wed, 28 Oct 2020 23:24:38 GMT

Thank you!

topic Self Employment Income Tax in State tax filing

Self Employment Income Tax

Re: Self Employment Income Tax

Re: Self Employment Income Tax