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Level 4
April 6, 2024
Question

App Sales in multiple states

  • April 6, 2024
  • 7 replies
  • 64 views

I'm a full-time software engineer, but last year as a hobby I put up an app for sale on the Apple App Store, and it was sold everywhere through Apple. Collectively, all app sales from across the world generated about $145.55, of which I received $102.10 after Apple took their commission.

 

All the US based purchases where from 11 different states, but all the amounts I earned in those states are very small. The states where the app was sold and the total sale amount (what Apple charged customers, excluding any sales tax) were:

 

Texas$43.70
Alabama$13.92
Illinois$13.92
Utah$11.92
Ohio$10.91
Maryland$8.97
Louisiana$5.98
Washington$4.95
Indiana$3.98
Tennessee$3.96
Michigan$1.98
District of Columbia$0.99

 

Please note that I'm a resident of Washington state, where I lived completely last year. So for all other states mentioned above, I'll be a non-resident. Every state has different rules, so I'm trying to figure out for which states from the above do I need to file state taxes and mention the 'income' I earned in that state ?

 

 

7 replies

MarilynG
Level 15
April 6, 2024

Since your business is Self-Employment and Income/Expenses are reported on Schedule C, you are considered to have earned all of your income from your home office in Washington.

 

You don't need to file a return in these other states.

 

If you receive a 1099-K from Apple reporting your sales revenue, here's more detail on What Online Business Owners Should Know and also Sales Tax 101 for Online Sellers you may find helpful.

 

 

 

 

 

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ahmadka2Author
Level 4
April 6, 2024

Thankyou for your reply, however based on my previous thread ...

 

https://ttlc.intuit.com/community/business-taxes/discussion/re-threshold-for-reporting-app-earnings/01/3255680#M108462

 

I'm not yet sure if I'll declare the income from the app as 'self-employment income' or 'hobby income'. But regardless of that, would what you're saying also apply if I were to file this income as 'hobby income' ?

 

Also, in what condition would a non-resident of a state need to file a non-resident state tax return for that state ? Isn't an app sold considered a source of income from that state ?

ahmadka2Author
Level 4
April 8, 2024

Hi @MarilynG waiting for your reply