Independent Contractor - multiple states

Forum|Forum|6 years ago
February 24, 2020
5 replies
57 views

I live and work in one state. I do part-time contracting work for a company in the same state. They send me to other states for a few days at a time. Do I owe taxes in all of the states, or just the one where I live and am paid?

KatrinaB48

Level 15

It depends on the state. Each state has different filing requirements for nonresident workers. Please view this TurboTax FAQ for more information and click the state department link to view the filing requirements for each state.

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Regnad KcinAuthor

Level 2

Thanks, but still confusing. For example Michigan defines business income as "all income arising from transactions, activities, and sources...". The "transaction" occurred in another state (where both I and the corporate entity that paid me are located), the "source" was in that other state, and I don't know how to define the "activity" - was it the teaching I did, or the financial transaction that occurred? At least two of the three occurred outside of the state of Michigan. Any further insight?

DaveF1006

Level 15

it depends on what you did in each of those states. I think this is related to the work you did in those states, in this case teaching. What kind of financial transaction are you talking about?

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