Out of state income?

[monrodian]

I live in Oregon. I travelled to Colorado for a dog competition. My dog won a prize worth $700.00 in the Colorado competition. I received a 1099-misc listing the winnings from the company in Colorado that awarded the prize. Do I need to file Colorado State income taxes? Are any of the travel expenses related to this trip to Colorado deductible (State or Federal)?

[ColeenD3 · Accepted solution]

Yes.

Nonresident Definition

A nonresident is an individual who did not reside within the boundaries of Colorado at any time during the tax year. However, the person may have temporarily worked in Colorado and/or received income from a source in Colorado. A nonresident is required to file a Colorado income tax return if they:

• are required to file a federal income tax return, and
• had taxable Colorado-sourced income.

Nonresidents will initially determine their Colorado taxable income as though they are full-year residents. Nonresident of Colorado will complete the Colorado Individual Income Tax Return (DR 0104) and the Nonresident Tax Calculation Schedule (DR 0104PN) to determine what income will be claimed on the DR0104 form.

[monrodian]

Thank you for your answer. Do you know if travel expenses incurred travelling to the competition are deductible? This is a Hobby, not a business.

[PattiF]

No, travel expenses are not deductible from the prize money that you received for your hobby. 

Here is information from the IRS about hobby income and expenses.