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  1. #1
    Portland Fred banerjek's Avatar
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    What questions do I need to ask my accountant?

    Although I have a day job, I run a small consulting business. I'm organized as a single member LLC which gets taxed as a sole proprietorship meaning I really get soaked this time of year.

    A major client is in another state and I'm being told I owe income taxes there in addition to income taxes in my own state. Is this actually possible? Aside from the fact that I do all the work where I actually live and don't go to that state, it seems like if I'm earning in one state, that same income shouldn't be subject to taxes in another state. Between a marginal fed tax rate of 25% + 15% self employment + almost 15% between the two states, that brings my marginal rate over 50%.

    I have a meeting with the accountant next week. I don't mind paying my fair share but I feel like I'm getting hosed on some kind of technicality and want to know how I need to approach the issue with my accountant.

  2. #2
    Pedaled too far. Artkansas's Avatar
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    Email your tax accountant a link to this thread. He should have the answers you seek when you get there.
    "He who serves all, best serves himself" Jack London

    Quote Originally Posted by Bjforrestal View Post
    I don't care if you are on a unicycle, as long as you're not using a motor to get places you get props from me. We're here to support each other. Share ideas, and motivate one another to actually keep doing it.

  3. #3
    Portland Fred banerjek's Avatar
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    Quote Originally Posted by Artkansas View Post
    Email your tax accountant a link to this thread. He should have the answers you seek when you get there.
    I've already emailed him a few questions as well as my understanding of the relative sections of law (which is pretty pitiful since it's just what I could glean from reading the appropriate government websites). But I've discovered that the more I understand, the easier it is for him to help me as some choices that may be appropriate for the majority of his clients may not be appropriate for me.

  4. #4
    Super Moderator no1mad's Avatar
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    Who told you that you owed in another State? I'm thinking someone got their wires crossed in payroll, but I could be wrong. Ain't MV a CPA type? He'd probably know.
    Quote Originally Posted by Cyril View Post
    Ride what and in what manner pleases you. Those that mind don't matter, and those that matter don't mind. srsly.
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  5. #5
    Portland Fred banerjek's Avatar
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    Quote Originally Posted by no1mad View Post
    Who told you that you owed in another State? I'm thinking someone got their wires crossed in payroll, but I could be wrong. Ain't MV a CPA type? He'd probably know.
    The accountant brought this up as a potential issue -- I did actually travel there for a single day. I know that having to file taxes in multiple states can be an issue for musicians and athletes. But by that logic, you'd think that anyone who gets sent on business travel is liable elsewhere which I know isn't the case.

  6. #6
    Pedaled too far. Artkansas's Avatar
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    Keep us posted. I'll be interested.

    I'm writing a book for a publisher in England. I may have to pay taxes in two countries.
    "He who serves all, best serves himself" Jack London

    Quote Originally Posted by Bjforrestal View Post
    I don't care if you are on a unicycle, as long as you're not using a motor to get places you get props from me. We're here to support each other. Share ideas, and motivate one another to actually keep doing it.

  7. #7
    location:northern Ohio
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    Would hair plugs be considered a medical deduction?
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