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  #9  
Old 01-18-2005, 08:23 PM
Phoebe Roberts, EA
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Default Re: Multiple state returns required?

GarySport wrote:

- quote -

> Yes, it is. According to the tax tables in that same packet
> you'd see these amounts:
> OKLA INCOME Single Married/joint
> 0-100 0 0
> 100-300 1 1
> 300-500 2 2
> 500-700 3 3
> 700-900 4 4
> 900-1050 5 5
> (Of course it becomes a lot more progressive as the amount
> of income increases in the table, up to a marginal 6.65% or
> 10%).
> So if you have a Okla. $1100 gross (required to file) and
> expenses of around $300, then you indeed go through all that
> packet and forms and enclose your federal return just to pay
> $4.00.


That's not how the Oklahoma non-resident calculation works,
though. *drags up a 511NR* You calculate the tax on your
total income, then multiply by the percentage of your AGI
that's Oklahoma-source.

So if you had $100,000 of Federal AGI, and $800 of Oklahoma
AGI, single, standard deduction, you'd have an Oklahoma tax
liability of $49. The tax on $97,000 (100k less exemption
and standard deduction) is $6131, and 0.8% (800/100,000) of
that is $49.

I guess you could get it down to $4 or $5 if your Federal
AGI got high enough, but it sounds to me like you did the
return wrong.

Phoebe

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  #8  
Old 01-18-2005, 02:24 AM
GarySport
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Default Re: Multiple state returns required?

DF wrote:

- quote -

> Referencing
> http://www.oktax.state.ok.us/oktax/i...11NRPkt-04.pdf
> "Every nonresident with Oklahoma source *gross* income
> of $1,000 or more is required to file an Oklahoma income tax
> return."
> I guess it is still possible to have $1000 gross with only
> $4 tax.


Yes, it is. According to the tax tables in that same packet
you'd see these amounts:

OKLA INCOME Single Married/joint
0-100 0 0
100-300 1 1
300-500 2 2
500-700 3 3
700-900 4 4
900-1050 5 5
(Of course it becomes a lot more progressive as the amount
of income increases in the table, up to a marginal 6.65% or
10%).

So if you have a Okla. $1100 gross (required to file) and
expenses of around $300, then you indeed go through all that
packet and forms and enclose your federal return just to pay
$4.00. Even if no expenses, tax liability would only be
$5-6.

GS

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  #7  
Old 01-18-2005, 02:05 AM
Seth Breidbart
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Default Re: Multiple state returns required?

D.F. <sendnomail[at]please.com> wrote:

- quote -

> Referencing
> http://www.oktax.state.ok.us/oktax/i...11NRPkt-04.pdf,
> "Every nonresident with Oklahoma source *gross* income of
> $1,000 or more is required to file an Oklahoma income tax
> return."
> I guess it is still possible to have $1000 gross with only
> $4 tax.


Or even less: $1000 gross, $990 expenses against that gross.

Seth

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  #6  
Old 01-15-2005, 06:23 PM
D.F.
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Posts: n/a
Default Re: Multiple state returns required?

- quote -

> > Sure looks like it to me. Now if one of the venues was
> > Las Vegas, she'll save one state.


> I just spent a couple hours going over the Oklahoma
> non-resident return. After all that, and the screwy way of
> figuring it, the tax due is $4.00. I can't believe they can
> process my check and the paperwork for $4.00. I'd have paid
> them $20 just to forget it, and call it even We'd have
> both come out ahead. They also demand a copy of my federal
> return.


Referencing
http://www.oktax.state.ok.us/oktax/i...11NRPkt-04.pdf,
"Every nonresident with Oklahoma source *gross* income of
$1,000 or more is required to file an Oklahoma income tax
return."

I guess it is still possible to have $1000 gross with only
$4 tax.

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  #5  
Old 01-15-2005, 05:05 PM
D.F.
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Default Re: Multiple state returns required?

GarySport wrote:

- quote -

> A singer is an independent contractor who normally performs
> in her own locale, but sometimes travels to 8-9 states in
> one year to perform a single gig of 1-2 nights, where she is
> paid by that venue. Does she therefore have to file a state
> income tax return in all 9 states for that 1-2 days in each
> state? Thanks for info.


Many states have a reciprocal agreement that allows income
earned in the other states to be taxed in the home state.
This is more common among states with similar tax rates and
similar numbers of people who cross the border. Read your
own state's info to find that list.

Not all states have income tax. Some states say you don't
have to bother if the income is under an amount. I think
$1000 is OK. Pun intended. CA is a zero on this scale.

Baring the reciprocal agreement, and only performing in
states with income tax, and earning above any threshold,
yes.

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  #4  
Old 01-15-2005, 05:05 PM
Katie
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Posts: n/a
Default Re: Multiple state returns required?

GarySport wrote:

- quote -

> A singer is an independent contractor who normally performs
> in her own locale, but sometimes travels to 8-9 states in
> one year to perform a single gig of 1-2 nights, where she is
> paid by that venue. Does she therefore have to file a state
> income tax return in all 9 states for that 1-2 days in each
> state? Thanks for info.


Yes, unless the amount she receives is below a de minimis
threshold set by a particular state.

Many states have withhold-at-source programs under which the
promoter of the concert or event is required to withhold
state income tax from amounts paid to nonresident
performers. Whether there is withholding or not, the
performer has income from a source in each state where she
performs.

Considering the cost of compliance with a large number of
states, and if the amount that would be due to any one state
is minor, it may be a perfectly rational business decision
on the part of the performer not to file returns, as long as
she understands that any or all of those states could come
back to her later requesting returns, tax, penalties and
interest, which she would have to comply with. That may be
a risk she is willing to take. She should also understand
that while the state where she resides would probably allow
her credit for the taxes she pays to all the other states if
she filed the returns, if she waits for another state to
come back to her it is possible that the statute of
limitations for filing claims for refund with her home state
may have expired by that time. In that case, she would
truly be taxed twice on that same income.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

The foregoing is intended

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  #3  
Old 01-14-2005, 11:53 PM
Rick Merrill
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Posts: n/a
Default Re: Multiple state returns required?

- quote -

> > A singer is an independent contractor who normally performs
> > in her own locale, but sometimes travels to 8-9 states in
> > one year to perform a single gig of 1-2 nights, where she is
> > paid by that venue. Does she therefore have to file a state
> > income tax return in all 9 states for that 1-2 days in each
> > state? Thanks for info.


No. A singer only has to report income in their "tax home"
state. They would receive 1099-misc forms and normally have
no state tax withheld. - RM

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  #2  
Old 01-14-2005, 10:56 PM
GarySport
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Default Re: Multiple state returns required?

- quote -

> > A singer is an independent contractor who normally performs
> > in her own locale, but sometimes travels to 8-9 states in
> > one year to perform a single gig of 1-2 nights, where she is
> > paid by that venue. Does she therefore have to file a state
> > income tax return in all 9 states for that 1-2 days in each
> > state? Thanks for info.


Tom wrote:

- quote -

> Sure looks like it to me. Now if one of the venues was
> Las Vegas, she'll save one state.


I just spent a couple hours going over the Oklahoma
non-resident return. After all that, and the screwy way of
figuring it, the tax due is $4.00. I can't believe they can
process my check and the paperwork for $4.00. I'd have paid
them $20 just to forget it, and call it even We'd have
both come out ahead. They also demand a copy of my federal
return.

GS

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  #1  
Old 01-13-2005, 10:35 PM
David Woods, EA, ChFC, CLU
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Default Re: Multiple state returns required?

"GarySport" <garysport[at]aol.comjk.net> wrote:

- quote -

> A singer is an independent contractor who normally performs
> in her own locale, but sometimes travels to 8-9 states in
> one year to perform a single gig of 1-2 nights, where she is
> paid by that venue. Does she therefore have to file a state
> income tax return in all 9 states for that 1-2 days in each
> state? Thanks for info.


Check with the states in question.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Old 01-13-2005, 10:16 PM
Tom Healy
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Posts: n/a
Default Re: Multiple state returns required?

- quote -

> A singer is an independent contractor who normally performs
> in her own locale, but sometimes travels to 8-9 states in
> one year to perform a single gig of 1-2 nights, where she is
> paid by that venue. Does she therefore have to file a state
> income tax return in all 9 states for that 1-2 days in each
> state? Thanks for info.


Sure looks like it to me. Now if one of the venues was
Las Vegas, she'll save one state.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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  #-1  
Old 01-12-2005, 09:56 PM
GarySport
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Posts: n/a
Default Multiple state returns required?

A singer is an independent contractor who normally performs
in her own locale, but sometimes travels to 8-9 states in
one year to perform a single gig of 1-2 nights, where she is
paid by that venue. Does she therefore have to file a state
income tax return in all 9 states for that 1-2 days in each
state? Thanks for info.

GS

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