@ali21471 wrote:
Will the answer given also apply to someone with a Green Card who lives/performs service for a CA based company as an independent contractor? Should they receive a 1099?
Thank you much for your thoughts in advance!
You cut and pasted a lot of stuff, but I think this is your actual question.
The rules for California are different for independent contractors and W-2 employees.
If you are a W-2 employee, California can only tax work you perform while you are physically working or residing in California. If you are working out of state for a California employer, California can only tax you for days you work in California (such as, trips for training, meetings, etc.)
If you are an independent contractor living outside of California, California can tax you for income you earn if you perform work for a client located in California, even if you never physically set foot in the state. (California will also tax you for work you perform inside California if you travel to the state for work.) That is true for anyone performing work as a self-employed/independent contractor, it doesn't matter if you are a US citizen, green card holder, or even an undocumented non-citizen. In general, if you work for businesses, they are required to issue a 1099-NEC if they pay you more than $600. However, if you perform work for people who are private parties and not themselves running a business, they do not have to issue a 1099. Regardless, you are required to report and pay income tax on all your income from your own accurate records, even if you don't get tax paperwork. You would need to file a single federal tax return, a non-resident California return reporting only the income from California clients, and a state return for your home state reporting all your income. Your home state will give you a partial credit for the taxes you paid to California.
