Jefferson County, KY Tax on Self-employment

[mortezadm]

Hello,

My spouse had a remote contract job last year (2022), which I believe is considered a self-employment (we received a 1099-NEC). Around $3K of that 1099-NEC was received when we lived in Louisville, KY. After that, we moved to another state. Do we need to file and pay any taxes for that self-employment to Jefferson County, KY? 

[AliciaP1]

Yes, you owe the Occupational License Tax on the net profit (income minus expenses) earned while living in Louisville, KY.

Per the Louisville, KY website:

Occupational License Tax: Every natural person and business entity engaged in any business, trade occupation, profession, or other activity for profit in Louisville Metro shall pay to the Commission, as collecting agent for Metro Government, an annual occupational license tax for the privilege of engaging in these activities. This occupational license tax shall be measured by: 

1. One and one-fourth percent of all wages and compensation paid or payable to every resident or non-resident employee for work done or services performed or rendered in Louisville Metro; and 

2. One and one-fourth percent of the net profit from business activities conducted in Louisville Metro by a business entity.

You can get a copy of the return to file here.

[mortezadm]

Thank you for your answer.


Are we also subject to Jeffersontown Occupational tax?
jeffersontownky.com 

[AliciaP1 · Accepted solution]

No, the Jeffersontown tax is due on wages/salaries paid only.  Self-employment income is not considered a wage or compensation for this tax calculation.

@mortezadm 

[mortezadm]

Considering that performing the job in Louisville, KY took only two month and it's over now, can we pay the Louisville metro area tax without submitting Louisville Metro Revenue Commission’s Registration Application?

[AliciaP1]

No, you do not need to register as a business in Louisville even though the tax is required.

@mortezadm