income from other states

[oceanlovin'ea]

Partnership has done work in Georgia, Texas, Florida and Trinidad this year. Highest amount earned was $900 in Texas, $300 in Georgia and $600 in Trinidad.

The partnership showed a loss for the year. So am I correct in assuming that none of the income earned in the other states would be reportable?

Next where would I go to find out filing requirements for reporting the income to these other states? Or is this something that comes from the K-1 and is reported by the individual partners?

This is an internet based technical consulting business. They will sometimes do a job for a company located in another state but they won't actually go to the state to do the work. Well, maybe occasionally they might have to but not so far.

Thanks for the help. I am okay with how to divide up the work and they keep it separated by job but there are just a few things I am fuzzy about.

Linda

[taxmandan]

Are the losses attributable to each state sufficient to net a loss, or are some states showing a net income? If they don't have a physical presence in a state, I would treat it like an online purchase of goods, re: only sales tax or reporting requirements for the state where they are located. If they travel to another state to install software or something, then it may be a different requirement.

[ChEAr$]

Linda, unless one of the partners is a resident of one of thoses states, I wouldn't worry my pretty little head one bit about it.

[taxea]

The K-1 detail should show the allocation to each state. The state instructions should tell you whether any return has to be filed.

[oceanlovin'ea]

Georgia

One of the partners is a resident of Georgia so he knows he has to report his partnership income to the state. But I think there is a loss or close to it this year.

I was thinking that the allocation of the income (loss) from each state would be on the K-1 somewhere.

Well, back to work. I have to get this one done this week. One couple is going out of town to do some volunteer work in Jamaica for a month or 2.

Linda

[Black Bart]

Partnership has done work in Georgia, Texas, Florida and Trinidad this year. Highest amount earned was $900 in Texas, $300 in Georgia and $600 in Trinidad.

The partnership showed a loss for the year. So am I correct in assuming that none of the income earned in the other states would be reportable?

Next where would I go to find out filing requirements for reporting the income to these other states? Or is this something that comes from the K-1 and is reported by the individual partners?

...just a few things I am fuzzy about.

Linda

I'm kind of fuzzy about these things too, but it usually boils down to "Is it worth it?" And the answer with these kinds of amounts is "No." While K-1s should list these allocations, they usually don't (which may be a good thing in this case).

You can usually Google-up any state's instructions by just typing in Dep't. of Revenue or Finance followed by the name of the state -- almost all have their forms/instructions online now. I don't believe Texas has a state income tax, so that's one down.

Regarding non-residents: Arkansas, for instance, has an "any amount" filing requirement stating "non-residents who received any taxable income while in Arkansas must file a return regardless of...amount." I assume other states do too and probably would want you to file non-resident partnership/individual returns which would end up with no tax due. Of course, we don't want to do that and it's very unlikely they'd be willing to pay for it.

So, although we're the type of people who can't stop worrying about such for a good while, I also vote to ignore the whole thing and odds are greatly in your favor that nothing will ever be heard from any of it again.

P.S. to Harlan -- it's no longer socially acceptable to say anything about "your pretty little head" to the girls (oops, there I go again). It's like Michael Douglas' swatting his secretary on the rump in "Disclosure" -- it doesn't fly nowadays (although she got even and swatted him back). Tough gettin' old, ain't it?

[outwest]

Nexus is the issue..

This is a bit broad brush, my apologies in advance.

To be subject to the jurisdiction of a state for taxes generally requires some sort of physical presence. In the current budget environment, states are doing what they can to extend their reach but in general, it remains true.

From what you described, I would guess the partnership remotes in for tech support or accepts calls, maybe does some contract programming. With no physical presence, you would have no reporting in most states. Another way to look at it is that the customer went out of state for the partnerships services.

Now, Georgia presents a possible filing requirement because you have a physical presence in the form of an active(?) partner. That partner provides a physical presence to the activities of the partnership in Georgia.

Without looking it up, I would note that most states don't just allocate activity by revenues. Often it's a three part test of income, physical assets and payroll. In my state, the state K-1 form includes that information for each partner to do the allocation.

[Black Bart]

Awww, you Idaho guys...

This is a bit broad brush, my apologies in advance.

To be subject to the jurisdiction of a state for taxes generally requires some sort of physical presence. In the current budget environment, states are doing what they can to extend their reach but in general, it remains true.

From what you described, I would guess the partnership remotes in for tech support or accepts calls, maybe does some contract programming. With no physical presence, you would have no reporting in most states. Another way to look at it is that the customer went out of state for the partnerships services.

Now, Georgia presents a possible filing requirement because you have a physical presence in the form of an active(?) partner. That partner provides a physical presence to the activities of the partnership in Georgia.

Without looking it up, I would note that most states don't just allocate activity by revenues. Often it's a three part test of income, physical assets and payroll. In my state, the state K-1 form includes that information for each partner to do the allocation.

Just when I post a good "seat-of-the-pants/gut-feelin'" answer, you come along and start quotin' law and regulations. Haven'tcha got some 'taters or sump'n that yuh need to go peel?