How do I determine what % of my Schedule C net income is in a non-resident state?

[hdulc]

Most of my Schedule C income is in Minnesota, but the expenses are in Wisconsin where I live. Is it just based on the % of gross income earned in MN or do I somehow have to factor in the expenses?

[ToddL · Accepted solution]

Unless the WI expenses are disproportionately attributable to the income of one state or another, allocate your Schedule C net income according to the % of gross income earned in each state.

Otherwise,  allocate the expenses in accordance to how they were attributable to the income in each state..