Single business for 3 different states returns

Forum|Forum|6 years ago
February 29, 2020
4 replies
25 views

I have 1 business but need to file 3 different state (FL, GA, CA) returns. The income (from 3 states) were reported on a single 1099-K but when I file each state, expenses from the other states are included. Do I need to separate the income and expenses into 3 separate companies within TurboTax (even though it's the same EIN)? If so, how do you select which company you want to file per state? Seems like all of the companies are appearing in all of the state returns.

DianeC958

Level 12

No, you do not need file 3 separate companies to file in the 3 states. State returns contain allocation worksheets for you to indicate the amount of income earned in their state. Then the program figures the allocation percentage and allocates income and expenses based on that amount to each state.

If you file a separate business return from your personal return the California the allocation worksheet is Schedule R, for Georgia it is Schedules 6 and 7 and for Florida unless you are a C Corp there is no state income tax to file or pay.

If the work you performed in these states was done remotely from your home state, all the income is taxable to your home state. For the income to be taxable in these states you would have had to go to that state and perform the work in each state.

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Carl

Level 11

What kind of business? It matters, because FL does not tax personal income. So if this is a SCH C business don't waste your time with FL.

Also, when dealing with more than one state, it's IMPORTANT that you complete the resident state return LAST. I'm not going to get into why, to save time and typing. But it does matter.

maddeviousAuthor

Level 2

It's a vacation rental business. I believe I'm still required to file FL taxes even though it's a schedule C business. I will file my resident state last as your mentioned but I'm still not sure how to allocate income and expenses to the correct state.