Do I have to pay taxes in every state I was contracted in

[Chaulk]

  On my schedule C I received a 1099-misc for a short job I did under contract,

do I have to file taxes in that state as well as for California where I live?

[AnnetteB · Accepted solution]

Possibly.  You would need to consider each state's individual filing requirements for non-residents. 

Usually the amount of money earned while working in a state as well as the amount of time spent in that state is taken into account. 

In the case of having income from Ohio as a non-resident, you are required to file an Ohio state return if you had “income or gain from a sole-proprietorship doing business in Ohio”.

If the expenses for that particular job exceeded your income, then you would not have a gain from doing business in Ohio.

To be sure, you could add the Ohio return into TurboTax Online.  If it turns out that you are not required to file for Ohio based on the TurboTax recommendation, then you can delete the Ohio return without paying the filing fee. 

[edited 2/16/19 | 12:00 pm PST]

[Chaulk]

It was Ohio for a 2 day job performing for their festival and there were alot of expenses on it too. Kind of hard having to pay turbo for another $39.00 for a state return. I put it into my list of 1099's on my self employed and turbo sdidnt flag me on it yet

[Chaulk]

I was not subject to backup withholding

[AnnetteB]

Please see the new information included in the answer above.

[Chaulk]

My expenses did not exceed the gain but it was in the range of $4000,so you say I should add the state when I start my return and then Turbotax will recommend me to delete it if I dont need it?

[AnnetteB]

Yes, you can add the state and go through the questions to see what the end result would be.  Then, if you are not required to file that state, it can be deleted and not filed.

[Chaulk]

Download it first before I go through federal return?

[AnnetteB]

No, you would do your Federal return first.  You would also need to be using TurboTax Online in order to complete the state return and be able to delete it later without paying the fee.  If you are using a CD/downloaded version, then you must pay first.  

[Chaulk]

My returns are complicated so I always file the CD version. What do you suggest..most likely I have file a non resident return for the 2 day job?, I am self employed and have very little gain on the schedule C but enough on rental income to put me in the positive

[Chaulk]

Thank you. Since I use the the CD version, are there any clues when doing the federal return (like tax bracket,etc )that would signal that I have to file a non resident return. I would hate to but the state only to find out it was not necessary Thanks in advance

[AnnetteB]

Because your income is on a 1099-MISC and not a W-2, there is not a "clue" along the way that TurboTax can calculate.  The 1099-MISC income is not usually tied to a particular state when you enter it, and expenses must also be taken into account.  The flip side of that is that the state also will not have a record or a way to tie your 1099-MISC income to that particular state since it is not reported on a W-2.  

I know it would be a lot of work for you, but you could create a "dummy" return using TurboTax online to test whether the state return would be required or not.  As long as you do not file the return there would be no fees associated with doing this.  

[Chaulk]

Thank you for taking the time to answer. Based on what you said it seems that since the 1099-Misc is  only sent to the federal government not the states then maybe I do not need to worry about it except they have the address of the issueing organization written on  it. Do you mean expenses against that particular job only or the entire schedule  C .
It would be alot of work to do the online version unless I only do it as far as the business part and mock it

[Chaulk]

I used to do Trubo tax online. Can one just import a cd version  from the previous year into it and test that way. Does not jeaopardize the  cd version I am working on now. Besides  next year they are forcing us to upgrade our computers next year for the CD version,so I might switch back to the online version anyway.

[AnnetteB]

It is possible to import a 2017 .tax file into TurboTax online.  Instructions are here:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1900883-how-do-i-transfer-last-year-s-return-into-turbotax-online"...>

From your previous comment, I was referring to expenses from that particular job if that could be determined.