Skip to main content
April 6, 2024
Question

App Sales in multiple states

  • April 6, 2024
  • 1 reply
  • 0 views

I'm a full-time software engineer, but last year as a hobby I put up an app for sale on the Apple App Store, and it was sold everywhere through Apple. Collectively, all app sales from across the world generated about $145.55, of which I received $102.10 after Apple took their commission.

 

All the US based purchases where from 11 different states, but all the amounts I earned in those states are very small. The states where the app was sold and the total sale amount (what Apple charged customers, excluding any sales tax) were:

 

Texas$43.70
Alabama$13.92
Illinois$13.92
Utah$11.92
Ohio$10.91
Maryland$8.97
Louisiana$5.98
Washington$4.95
Indiana$3.98
Tennessee$3.96
Michigan$1.98
District of Columbia$0.99

 

Please note that I'm a resident of Washington state, where I lived completely last year. So for all other states mentioned above, I'll be a non-resident. Every state has different rules, so I'm trying to figure out for which states from the above do I need to file state taxes and mention the 'income' I earned in that state ?

 

 

1 reply

April 6, 2024

Since your business is Self-Employment and Income/Expenses are reported on Schedule C, you are considered to have earned all of your income from your home office in Washington.

 

You don't need to file a return in these other states.

 

If you receive a 1099-K from Apple reporting your sales revenue, here's more detail on What Online Business Owners Should Know and also Sales Tax 101 for Online Sellers you may find helpful.

 

 

 

 

 

ahmadka2Author
April 6, 2024

Thankyou for your reply, however based on my previous thread ...

 

https://ttlc.intuit.com/community/business-taxes/discussion/re-threshold-for-reporting-app-earnings/01/3255680#M108462

 

I'm not yet sure if I'll declare the income from the app as 'self-employment income' or 'hobby income'. But regardless of that, would what you're saying also apply if I were to file this income as 'hobby income' ?

 

Also, in what condition would a non-resident of a state need to file a non-resident state tax return for that state ? Isn't an app sold considered a source of income from that state ?

ahmadka2Author
April 8, 2024

Hi @mglauner waiting for your reply