I got some clarity from one of our Tax Experts, based on what was presented in the initial question, the taxpayer received both a W-2 as well as a 1099-MISC for a bonus payment. By rights this bonus payment was wage compensation and should have had FICA taxes withheld, with the company matching the withholding. Where Geoffrey's answer could have been clearer (though mostly correct) is that the 1099-MISC should have been claimed through Form 8919, and as such would be treated as wages. If those wages were not earned physically working in the state where the company is located, the Original Poster would not be taxed in that state if he is not a resident of that state.
