| “(1)So my question is, do I file taxes in the state of IL or FL or both?”----->As you work in different location, the location of your tax home does become an important concept; In order to deduct business travel expenses, you must be able to show where you are traveling from; that's your tax home. The expenses for travel back and forth from your tax home are deductible expenses. (Remember that commuting expenses, that is, expenses for driving from your home to your business location, are not deductible.) Before you deduct travel expenses, you must determine where your tax home is located, or, in some cases, if you have a tax home, then you must determine that your business travel involves being away from your tax home.Only if these two conditions are met can you deduct away-from-home travel expenses. If you may not have a regular or main place of business because of the nature of your work. In this case, your tax home may be the place where you regularly live.
You, as a nonresident of IL(as you are a full year resident of FL), need to file your IL tax return on your 1099 income(you need to pay quarterly estimated taxes to IL and IRS as an IC) that you earn in IL and there is no income tax in FL, you can’t claim yur IL tax on your Fl return however, you can claim your IL tax paid to IL on your fed return 1040. Being a FL full year resident doesn't exempt you from IL taxes. If you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.HOWEVER, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year;y ou were a U.S. citizen or resident for the whole year;y our prior tax year covered a 12 month period.
“(2) Also can I write off food at the beginning when I was still in a Hotel and also now when I have an Apartment?”----->You must determine whether your assignment is temporary or indefinite when you start work;if it is realistically expected to exceed one year, it is considered indefinite and you CANNOT deduct your living expense while there in IL.If u expect it to last more than one year and it in fact does NOT last more than one year, you CANNOT deduct the living exp. When you determine your tax home, you can then deduct expenses for traveling away from home. The IRS says you are considered to be "traveling away from home" if your duties require you to be away from the general area of your tax home "substantially longer than an ordinary day's work, and you need to sleep or rest to meet the demands of your work while away from home. Once you have determined that your business travel from your tax home qualifies for tax deductions, you can deduct business travel expense(Transportation, Lodging and meals.or etc). As a sole proprietors and SMLLCs, you need to show these expenses in the "Expenses" section of Sch C to reduce your business income reported on Sch C line 29/31.
“(3) The plane tickets that I bought flying back home?”----->it depends as described above; You can deduct costs to take you from an airport to your hotel or to a business location. Business travel is a specific term determined by the IRS to describe travel away from your tax home that is "substantially longer than an ordinary day's work" and that requires you to sleep or rest while away from home. You must also sleep away from home to be able to deduct these costs. The travel must also be "temporary" (lasting less than a year).
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