I live in ohio and received signing bonus from land owned in kentucky. What Kind of federal income taxes should i expect pay and will i have to pay state taxes in both states. Thank you.
A LOT... when I got my bonus several years ago...I think it was about 1/2 that went to Uncle Sam.
Lease bonus consideration is "ordinary income"
You should receive from payor IRS Form 1099
You should not have to pay income tax in 2 states
If you have no other "KY income", then I would declare the bonus as KY income; you may not have to pay any income tax
Hope this helps
Good luck