Question

Sales in 2 states

Forum|Forum|6 years ago
February 3, 2020
1 reply
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We now live in Arizona & this is our 2nd year of filing state taxes here. We have a business making wire sculptures bonsai trees & this past year, we traveled to Idaho to participate in an Art Fair. We paid the state tax for our sales already. Do we have to file Idaho state taxes as well?

J

JotikaT2

It depends.

Are you reporting the sales from the sculptures on your personal return as a Self Employed business?

If you are, then you would be subject to tax on income which is from transactions or activities which occur within Idaho.

Idaho sources of income for nonresidents

If this applies to you, you would prepare a nonresident return for Idaho and in the state section, only include the net income from your Idaho sources.

You would then complete your Arizona return last to ensure you receive any out of state tax credits for income which may be taxed by both states.

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