Question

Synda Lefkin is a women's professional tennis player. Synda plays in 15 cities in the United States each year. She won 7 of those 15 city tournaments in 2016. Her earnings in each of those tournaments were $250,000. Which of the following is true about Synda's tax responsibilities?

A. Synda needs only pay taxes on her income in those cities and states in her home state
B. Synda needs only pay taxes in those cities and states where she earned the income and not in her home state
C. Synda needs to pay taxes in her home state and in the cities and states where the tournaments were at the full tax rate
D. Synda need to pay taxes in her home state and in the cities and states where the tournaments are at an apportioned rate.

Answer 1

The correct answer is D) Synda needs to pay taxes in her home state and in the cities and states where the tournaments are at an apportioned rate.

Synda Lefkin is a women's professional tennis player. Synda plays in 15 cities in the United States each year. She won 7 of those 15 city tournaments in 2016. Her earnings in each of those tournaments were $250,000. The state that is true about Synda's tax responsibilities is "Synda needs to pay taxes in her home state and in the cities and states where the tournaments are at an apportioned rate."

A United States resident has to pay taxes in all of the states where she receives income. She receives a tax credit for taxes paid to other states. The person has to complete the so-called form "apportionment schedule" to check how much of the income is taxable in the states your receive income.