Clarification question on this, Paypal also reports the 1099-K to the state. Would in the above case, Paypal would report it to VA instead of NC. The tax payer would report the income in his/her NC returns and pay the tax as due. However since Paypal sent the 1099-K to VA, wouldn't VA also expect a return and tax on the amount? Am just trying to understand how the state aspect of the 1099-K works.
