In the very near future, I am going to be working for myself. I am also planning to do plenty of work outside of my home state of NY. I will be travelling to the client's property to do the work, which will last no more than a day or two at most.


When I complete a job out of NY, do I need to file taxes in the other state? Do I simply need to have the out of state client mail the payment to my home office?

Thanks.

Rob In Upstate NY

Rob:

Actually, you legally will have to pay taxes to BOTH the state in which the work is done AND in your home state of NY, if the amount earned are over certain thresholds, which vary from state to state.

If you DO have to pay taxes to other states, New York will give you a credit for those taxes so lessen your NY state tax liability.

You should engage the services of a competent tax pro early in the process to monitor the situation. Any fee he charges will be well worth it to prevent the heartburn you would feel f you fell behind on the out-of-state taxes due.