I live in Ohio and received signing bonus from land owned in Kentucky. What kind of federal income taxes should I expect to 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