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Independent Contractor - multiple states

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?

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5 Replies
KatrinaB48
Expert Alumni

Independent Contractor - multiple states

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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Independent Contractor - multiple states

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
Expert Alumni

Independent Contractor - multiple states

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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Independent Contractor - multiple states

The financial transaction to which I refer is the payment received for services. I teach a two day seminar in various states. The company for which I work is located in my home state, and I am paid later via check. Payment never leaves the state I live in. The seminar is held in other states.

AmyC
Expert Alumni

Independent Contractor - multiple states

MI would require a tax return on MI sourced income over $4,400. 

Mi definition of non-resident source income includes wages for work performed in MI.

You would file a MI return if your income exceeds $4,400.

 

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