I'm an independent contractor in WA. On assignments to NE, I receive a flat fee of $230 to cover taxi & check-in bag fees. Will the money count as wages towards NE or WA?

[trid93]

I'm an independent contractor based in WA state. I have traveled on 2 assignments to NE. On both assignments, I was given a flat fee of $230 to cover cost of taxi/Uber to/from airport and check-in bag fees. I was not asked to submit receipts for the money given. Will this travel allowance count as wages towards NE or towards my home state of WA – which does not have a state tax?

[trid93]

Thank you! However, the company that contracts me to do the work for the NE client - and pays me - is in UT.  So as the NE client does not directly pay me the flat travel fee, does it still count towards my NE wages/income?

[MarilynG]

No, this counts as Self-Employment income you earned in your Resident State. 

[Edited 3/10/2010 | 3:15 PM]

[trid93]

Thank you again TurboTaxMarilynG!!!

[MarilynG]

You are most welcome 🙂

[MarilynG · Accepted solution]

If you are Self-Employed, all of your income is considered to be earned from your Home Office in your Resident State.

If  you went to a client's site in Nebraska to oversee or perform work there, you don't need to file a Nebraska return, just report all your income to your Resident State.

You could add the income you received for Travel Expenses to your income on Schedule C, then deduct the corresponding expenses against the income. 

Click this link for detailed info on Reporting Self Employment Income and Expenses.

[Edited 3/10/2020 | 3:13 PM]

[trid93]

Thank you! However, the company that contracts me to do the work for the NE client - and pays me - is in UT.  So as the NE client does not directly pay me the flat travel fee, does it still count towards my NE wages/income?

[TomD8]

Yes, it is NE income.  The income "source" is determined by where the work was actually performed, not on the location of the employer's home office.