I am sole proprietor (in horse business) and my work requires travel to many states for horse shows. Do I have to pay taxes in multiple states?

[TomD8 · Accepted solution]

Unfortunately, you might have to.  States with an income tax can tax non-residents on income earned within their borders.  You might escape this in some instances if your home state has tax reciprocity with the other state (although tax reciprocity applies only to W-2 income).  Also, you wouldn't have to file in a state if your income from that state fell below its filing threshold for non-residents.

Your home state, of course, can tax you on ALL your income.  But you should be able to take credits on your home state's return for taxes paid to other states.

If your situation is too complicated, you might want to hire an accountant.