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Level 1
posted Apr 13, 2023 6:19:45 PM

What form to file? Washington DC, Non resident, Single Member LLC with 80% of gross income from professional services

Hi TurboTax community,

 

I own a single member LLC registered in California, and I have a client whose billing address, that I invoice, is in Washington D.C., though it's a large corporation and has locations in a number of other places.

 

I'm trying to figure out:

  1. Will I need to file any tax returns to Washington D.C. for 2023? Forms D-40 and D-30 seem to say I do not need to file them
  2. Will I have any tax liability to Washington D.C. in 2023?
  3. Do I need to make any estimated tax payments?

TurboTax hasn't been helpful because it doesn't generate any forms once I declare that I'm not a resident of D.C.

 

Here are a few additional details:

  • I am not a resident of DC and will not be in 2023
  • >80% of my gross income comes from services rendered by me
  • I provide professional consulting services
  • All of the income is from tax year 2023
  • The income is >$12,000
  • My client engages in interstate commerce and so do I in the course of working with them

The D-30 booklet seems to show that I'm exempt from filing D-30 because my business is a trade where, "more than 80 percent of its gross income is derived from personal services actually rendered by owners or members of the business"

The D-40 booklet seems to show that I do not need to file form D-40 because I was not a resident. Neither the D-20 or D-65 forms seem correct for my situation either.

 

Is there something I'm missing here? It seems to me like there is no form for me to file and that I will not have a tax liability to D.C. I just want to make sure I'm estimating my taxes correctly. Any help appreciated!

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1 Replies
Expert Alumni
Apr 13, 2023 6:38:04 PM

Yes, you are correct that you do not need to file a tax return for Washington D.C. Your research and findings indicate that there is no filing requirement for you with D.C. based on the instructions for the form. You are not missing anything and do not need to file a return with Washington D.C.