Remote work for MN & NY from CA

[ynwa]

Hi Turbotax Community,

My spouse worked for CompanyA based out of MN as an independent contractor from Jan 2022 through Aug 2022. She resigned in August and joined a CompanyB based out of NY in Sep 2022 as a full time employee. She was hired as a remote employee at both companies.  We both are CA residents and she hasn't ever traveled to NY or MN for work. I work for a CA based company and she was covered under my health insurance for 2022.

Here are the relevant details from both tax forms.

1099-NEC from Company A

4: Federal income tax withheld: ""

5: State tax withheld: ""

6: State/Payers State no: MN XXXX

7: State Income: $XXXX

W2 from Company B

 2:  Federal Income Tax withheld: $XXXX

15: State Employers ID: CA XXX-XXXX-X

17: State Income tax: $XXXX

Do we need to file a state return for MN or NY or just Federal & CA tax return ?

Thank you and I really appreciate your help.

[MaryK4]

If you only worked in California, you only have to file the California tax return UNLESS there was any withholding from the other states (NOT likely for 1099s).

[ynwa]

Thank you @MaryK4 

How do I find out if there was any withholding from other states ?

[ThomasM125]

State tax withheld on a Form 1099-NEC would be reported in box 5. State tax withheld on Form W-2 would be reported in box 17 or 19.

[ynwa]

Thanks @ThomasM125 

Box 5 is empty in 1099 NEC.

Form W-2 has following values

Box 15: CA XXX-XXXX-X

Box 16: $XXXXX

Box 17: $XXXX

Box 18: N/A

Box 19: N/A

Box 20: N/A

Does CA in Box 15 indicate that they have withheld state tax for CA ?

[DaveF1006]

You do not need to file a Minnesota state return. NYS does require a non-resident return be filed for all New York sourced income. if you file your NYS non-resident return first, you will be given credit for the tax you paid in NYS on your California state return.

Yes, it does appear that there was tax withheld for the State of California by the NYS employer.

@ynwa 

[ynwa]

@DaveF1006 Could you clarify why I only need to file NY return and not Minnesota ? 

I already filed Federal & CA return. Should I file NY Return now and amend CA return ? 

1. Should I be selecting Yes for "Do you have any NewYork state only wages to report" while filing NY state return ? 

2. On selecting Yes it asks for Employer name and NewYork state wages. Is the NewYork wages same as the wages in Box 1 of W2 ? Box 16 (State wage) is N/A. 

[DaveF1006]

Yes, according to this Minnesota state source, if you're working in another state for a business located in Minnesota, that income is not taxable in Minnesota. 

Yes, you should file a NYS return and amend the California return. You would file a New York state non-resident return and the New York Wages would be the same as what is reported in Box 1 of the W2 because this is the NYS sourced income.

[ynwa]

@DaveF1006Thank you so much. Really appreciate your help.

One quick question. I'm supposed to receive a tax refund from CA. Should I file the amended return after I receive the CA tax refund or right after I file NY state return ?