Understanding Tax Requirements for Out of State Sales: A Guide for Consultants

[GeorgiaPeach]

HELP!! I moved from Kentucky to Georgia in 2004. I received a "Form 740-NP" from KY this year that states "Form 740-NP must be used by full-year nonresidents who had income from Kentucky sources...."

What I need to know is...if I did a few catalog shows with my past KY hosts or placed individual orders with them during 2005 does this count as "income from Kentucky sources"? I have never heard of this. When I lived in KY and did shows in Indiana, Ohio, and WV no one ever asked me if some of my income came from outside of the state.

I have a "tax friend" in KY and he thought catalog shows were fine but if I traveled to another state to do a show I might have to pay tax on that. Since I have already claimed ALL my income to Georgia...what to do?

I have been a consultant for over 7 years. One of the greatest things is not having territories and being able to go anywhere and do shows. I have NEVER heard of having to do this!

Anyone have a tax background or had this kind of situation happen to them?

 

[agw]

I'm no tax expert, but isn't all of your "source" income from Pampered Chef? If they're going to get picky about it, your "source" income comes from Illinois. Sure you're selling wherever you happen to be, but your check comes from Pampered Chef regardless of where your shows might have been. Y'know?

 

[monica_sweetconsultant]

me and my DH moved to MS. last year and he still had income from Ga. we went to H&R Block and she said she couldnt do the Ga. income for some reason. i used to do taxes and never had that problem. it may be a new IRS thing. you might try and call them???