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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11842
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a evangelist and live in Indiana. Yet, I preached and

Customer Question

I am a evangelist and live in Indiana. Yet, I preached and sang in several different states.
I made$4,650 in Michigan
made $1500 in Ohio
$5200 in Ill
$4500 Georgia
$1000 NM
$1500 Mass
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,Your intuition is good, that becasue the services were performed in those states (services being a tax term of art, ... not referring to services as you might think) you ight owe taxes in those states .... (this is called having Michigan "source income," for the portion earned IN Michigan).However there are two issues that help to provide some relief:(1) Different states have standard deductions and/or personal exemptions, so that in SOME of these states yuo may need to file a non-resident return and pay taxes at all (being below what is referred to as that state's "filing threshhold."), and(2) IN your RESIDENT state, you will pay taxes on ALL income regardless of where earned. HOWEVER, your resident state will give you a credit for taxes paid to other states (this is done to prevent double taxation) Paying taxes on the same income to two different taxing authorities.
Expert:  Lane replied 1 year ago.
Hang with me a minute and I'll look up the various exemptions for the different states
Expert:  Lane replied 1 year ago.
Michign: Personal Exemptions: Single – $3,950; Married – $7,900; Dependents – $3,950 No standard deduction
Expert:  Lane replied 1 year ago.
Ohio: Personal Exemptions: * Single – $1,700; Married – $3,400; Dependents – $1,700Standard Deduction: None
Expert:  Lane replied 1 year ago.
Illinois: Personal Exemptions: Single – $2,100; Married – $4,200; Dependents – $2,100Standard Deduction: None
Expert:  Lane replied 1 year ago.
Georgia: Personal Exemptions: Single – $2,700; Married – $5,400; Dependents – $3,000Standard Deduction: Single – $2,300; Married filing joint return – $3,000; Taxpayer over 65 – $1,300 additional.
Expert:  Lane replied 1 year ago.
New Mexico: Personal Exemptions: ** Single – $3,950; Married – $7,900; Dependents – $3,950Additional Exemptions: Taxpayer or spouse 65 or older – up to $10,900 deduction each from taxable income. An additional tax exemption of up to $2,500 is allowed for low- and middle-income taxpayers.Standard Deduction: (2014) Single – $6,200; Married filing jointly – $12,400 Same as federal
Expert:  Lane replied 1 year ago.
Personal Exemptions: Single – $4,400; Married – $8,800;Dependents – $1,000Standard Deduction: None
Expert:  Lane replied 1 year ago.
So, as you can see you'll have to file in several states BUT, if you use use Turbotax or one of the other packages (or use a preparer, who will use one of the professional taax prep packages out there) you typically do the federal return first, then all of non resident states where you'r over the threshhold, then do the resident state last - so that you get the full credit for taxes paid in your non-resident states - tthe package will generate the needed schedulesNot as complicated as you might think.
Expert:  Lane replied 1 year ago.
Let me know if you have questions....Lane