Have you ever dreamed of traveling the country in an RV, I have? Recently I came across a whole group of Entrepreneurs doing just that and I was intrigued by the tax implications – mostly because someday soon I hope to join them.

There are actually two different tax issues associated with travel within the United States. As a business owner it is your nature to do your work anywhere you happen to be. Unfortunately it opens you up to tax issues in the state you are passing through. Most associate this with musicians and athletes who must pay income tax to the state they play in.

If you go to Arizona to speak for a small group and they pay you $2000 to speak for a day you could owe money to AZ even if your home state is CO – the problem is that each state has a different definition of when income tax is due on your income.  In some states business income is taxed differently than personal income so the classification of income makes a difference. Each state you pass through can claim a part of your income. You also have to take into consideration website traffic and sales which can also pull you into tax from a different state.

Income tax is not the only issue; sales tax can also come into play. Each state has its own definition of what is subject to sales tax. In most states only products are subject to sales tax but there are a few states where services are also taxed.

Because this can get so complicated we have a video to help you determine if you might be subject to tax for different states. We can also analyze your situation to see if other states can lay claim to your income. Keep in mind if you travel for business this could change every year. Schedule an appointment today and we will help you determine which states you need to be filing taxes in.