Showing results for 
Search instead for 
Did you mean: 
Level 1

Income Tax 2 states

I am a small business owner in TN.  We do mostly technology consulting but also do some STEM type classes for kids.  My wife, under the company's name, has been doing some work in AL,  for a STEM class she is teaching there.  Do I need to setup a separate tax item for this work, even if we are not collecting taxes, since this is a service.  

For all my TN work I just charge a flat rate hourly and pay the business taxes and federal income taxes as necessary.  Can anyone tell me if I need to do anything special?  Do I need to file my business in AL and show the income separately, etc.

1 Comment
Not applicable

Income Tax 2 states

Hi, @gkaparos.


I can help share some information about multi-state withholding responsibilities.


There are some cases that there are reciprocal agreements between states that would require to only pay income tax to one of the two states. To ensure your withholding responsibility, I'd recommend contacting your State or the IRS to verify if you need to file the income tax separately.


As always, you can check out our site if you need some help articles in the future: Help articles for QuickBooks Online.


Please let me know if you have additional questions about income taxes. I'm here to help.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up