Let's say I'm a composer who works exclusively out of New York, but all of who's clients are in California - i just send them the finished music via the internet. Which state am i supposed to pay state income tax to? so far i've been paying NY (state and city)
First of all, Welcome to AP, mpmusicny, and hope that you stick around and have some fun with us!
In general, you normally pay state tax to the state in which you reside however there are many exceptions -- for instance, if you are part of the military and stationed in another state. I found this New York state tax site -- it has a question and answer page that should address this. Hope this helps.
Posts: 5569 | Location: south of Cincy | Registered: 07-12-02
Kelley is right. If you are considered a full-year resident of NY and work exclusively out of NY then you would file in NY.
If you a resident of NY yet travel to different states and actually work out of those states then you would file a resident state return for NY and a non-resident for the states you worked from (if they have state tax returns).
But for peace of mind, best to call a CPA or call the state tax departments of all states in question. And welcome!
Posts: 9192 | Location: Atlanta, GA, USA | Registered: 06-03-02
When they pay you do they withhold CA state income tax? If so, you may want to file a return with that state for a refund. I used to live in NYC but don't remember, do they make you pay estimated taxes every quarter?
Posts: 7705 | Location: On Vacation | Registered: 06-06-02
hey, thanks for answering, guys! I'd stopped checking in after a few days. so sorry for my tardy reply, and thank you for clarifying the situation. Since I only go to California for at most a few days a year, to shake hands with clients, etc. it should be straightforworward. All the best..