What should you do with taxes if you work in different clubs all across the USA? Like summertime in Chicago, fall time in New York, Springtime in LA...?
What should you do with taxes if you work in different clubs all across the USA? Like summertime in Chicago, fall time in New York, Springtime in LA...?





I used to do this routinely. Basically, you must separately keep track of the amount of money you have earned, and the amount of business expenses you have incurred, when working in each different state. For federal income taxes, you file a 1040 with Schedule C that includes ALL of your income from the various states, plus ALL of your business expenses. For states that impose income taxes that are not your legal state of residence, you file individual non-resident state tax returns listing the income and expenses that only stem from work in that particular state. For the state that is your legal state of residence, you file an individual resident state tax return listing ALL of your income plus the amount of income derived from only your home state ( note this may vary with individual state tax return specifics ). But on your home state resident tax return, you also claim credits for income taxes you had to pay to all of the other non-resident states from which you derived income ( which is why you need to complete the other state non-resident tax returns first ).
When I was travelling a lot, it was nothing for me to file 6 different state tax returns. I always used Turbo-Tax for Home and Business to do this, since it can generate all of the different state tax forms and handle all of the tax credits.
Also note that, if your home state happens to be California, they now have a 'nexus' law that attempts to tax out-of-state earnings as well as in-state earnings of all California residents. I really don't know a whole lot of specifics about how this works, other than California based co-workers complaining that they must now pay 'double' taxes to both California and New York on money they earned working in New York ! Similarly, New York City attempts to tax anyone who has worked within the city limits, even if they are a resident of a different state. California and NYC also have tax enforcement units that are far more 'aggressive' than the IRS in regard to tracking down people whom they think may owe them a significant amount of income tax. So if either of those situations apply, I'd highly recommend using an accountant to prepare your taxes.
Thanks, it doesn't apply. I'm from MI. I plan on doing this, so I haven't yet, and may consider Chicago my official residency down the road.





MI home state tax rates are lower than IL !
Thanks, you were very helpful.
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