Amounts earned in non-resident states are low:
$767 Michigan, $820.00 Illinois, $1118 Ohio.
I ran my home state (NY) and then deleted it because it took in all of the income and turbo tax said that I should do all non-resident states first, but paying $49.99 for each of these states seems excessive when I am not sure it will produce any liability and the income is so low, plus my final Schedule C results in a loss.
To complicate my return I received 1098-T income that must be reported on my return as income from Ohio State University, I am not sure how that is treated on State returns. When I ran NY it resulted in a tax liablity.
Do I need to file in these states?
Thank you for your help. This is so complicated.
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Here are the requirements for each state.
Michigan. Nonresidents must file if they have Michigan-source income and they owe Michigan tax or their federal AGI exceeds the exemption allowance. MI exemption allowance is $4,400, but it must be prorated. However, I suspect that your AGI is higher than even the 100% exemption allowance. So the best thing is to run the MI return, see if you owe, if you don't, you can just delete it.
Ohio. Individuals with income from Ohio sources are required to file unless the individual meets an exception. One of the exceptions is that the exemption amount is the same as or more than Ohio adjusted gross income. Below is OH exemptions amounts. Again, run the numbers in TurboTax and see what you come up with.
Illinois. Nonresidents must file if they earned enough taxable income from IL sources to have a tax liability. Exemptions depending on the filing status vary from 0 to $4550.
When you run the numbers, make sure that you start the preparation from your non-resident returns. Then prepare your NY tax return.
Unofficially, you do not need to file an Ohio return, If your federal adjusted gross income is less than $13,200 ($15,550 Married filing jointly or $10,850 if you are someone's dependent). Note that's your total income, not just your Ohio income.
So (most likely) your are technically required to file an Ohio return. You will owe no OH tax, as OH has a 100% small business income deduction (BID) for sole proprietors with less than $250,000 net business income.
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