Non Resident Income

[chapguy19]

Client A: from Ohio and receives OH W-2 with OH taxes w/h.  However, his job is to go all over the country selling his company's product inside of Costco and county and state fairs, etc.  All of his expenses are picked up by his company including room and board and rental car.

Does he have to pay state taxes for every state he works in?  Moves to a new Costco, etc. every two weeks.

Client B: Is a retail liquidator from Washington.  He goes all over the country and becomes a salesperson to push as much of the inventory out the door as possible at the "Going out of business" sales.  He receives 1099-NEC from the furniture store.  Also receives a 1099-NEC from the company that is paying some of his room and board and got him the job assignment.  Once they have sold all the inventory, he moves on to the next one.

Does he have to pay state taxes for every state he works in?  He does 3-6 of these sales per year.

Thanks in advance, Christopher

[PhoebeRoberts]

Each state has different rules. All the states with an income tax publish non-resident instructions, so people will know who has to file a return in that state.

[chapguy19]

Both client's tax returns show no out-of-state tax returns in 2023.

For the Costco guy, should I instruct him to contact his payroll service to ensure that state money is withheld?

For the furniture guy, I know that I have to include an OR return but he never received a 1099-NEC from CA where he also worked.  He doesn't even remember how much it was.

[chapguy19]

What I do know if their income is from NY or CT or PA or NJ, I am charging an additional $750 to do the return.