calrob
Returning Member

1099 Misc different state than you reside

Received a 1099 Misc from employer in Utah (less than $2000) and I live in Maryland. Do I need to file a non resident Utah return? If so, how do I make sure I'm not paying tax on that income in my Maryland state form?

PaulaM
Employee Tax Expert

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Yes if you received UT sourced income, then you will need to file a non-resident UT return. Then on your resident state, you take a credit for taxes paid to another state. 

 

UT non-resident

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Get your taxes done using TurboTax

You never stated where you were physically working when you earned this $2000, were you in UT or MD?

so I would appreciate you stating that and then paulaM can reconfirm her advise
calrob
Returning Member

Get your taxes done using TurboTax

I was in Maryland the entire year.

Thanks

calrob
Returning Member

Get your taxes done using TurboTax

Thanks for the information. Appreciate you.

PaulaM
Employee Tax Expert

Get your taxes done using TurboTax

Thanks for clarifying. However, you will still need to file an UT nonresident state income tax return to report your UT sourced earnings. According to the UT Department of Revenue, you must file a UT nonresident state income tax return if you have income from Utah sources and you must file a federal return. UT only makes an exception for income received through pass-through entities.

 

You will also need to report these earnings on your resident state income tax return.You will get a state tax credit in your home state for the UT state taxes paid.

 

Utah-Who must File

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calrob
Returning Member

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Thanks again for your detailed answer. TurboTax is putting the income from that 1099 Misc towards my Maryland tax. How do I let it know that income was from Utah and should be taken off the Maryland side?

 

 

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Did you complete the UT return? The credit should appear on the MD return once that is completed
calrob
Returning Member

Get your taxes done using TurboTax

No, I haven't done the Utah return yet. I guess I'll have to download that form.

 

Thanks again.

calrob
Returning Member

Get your taxes done using TurboTax

You were so helpful with my last question I was wondering if you could help me out one more time. Where do I enter the sale of a rental property that I sold for a loss? When I try to enter it in "Wages and Income"  as a sale of business or rental property it tells me I can't do it there because it was a loss. I don't see anything in "Deductions and Credits" where I can enter it.

 

Thanks again

Get your taxes done using TurboTax

You have to proceed through the Rental Properties and Royalties (Sch E) section, add the rental as an asset, and then indicate that you disposed of it (via sale) in that section.

 

You should see Sale of Property/Depreciation in the Rental Summary and that is where you will want to begin (screenshot below).

 

 

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