topic Confusion about what state to file 1099-MISC "other income" when 3 states are involved? in State tax filing

Confusion about what state to file 1099-MISC "other income" when 3 states are involved?

thehawk — Tue, 04 Feb 2020 00:42:35 GMT

My daughter goes to college in Pennsylvania. She received $4,000 in funding from her college for her summer internship in California. We live in Massachusetts. What state should she declare the $4,000 reported on the 1099-MISC "Box 3-Other Income", PA, CA or MA? Thanks so much for your help!

Re: Confusion about what state to file 1099-MISC "other income" when 3 states are involved?

AmyC — Tue, 04 Feb 2020 00:59:35 GMT

Massachusetts is home base and wins the right to tax the money.

Re: Confusion about what state to file 1099-MISC "other income" when 3 states are involved?

thehawk — Tue, 04 Feb 2020 02:30:42 GMT

In terms of the Federal taxation, is the anyway around paying the "self-employment tax" or the "tax for certain children who have unearned income?" The 1099-MISC income was to cover summer internship expenses, and didn't even cover all of expenses in pricey San Francisco . If she paid the self-employment tax, I know she could deduct expenses, but most of her expenses do not line up what you can deduct for a self employed business. Thanks in advance for your help.

Re: Confusion about what state to file 1099-MISC "other income" when 3 states are involved?

KrisD15 — Tue, 04 Feb 2020 22:10:28 GMT

Yes, enter the 1099-MISC and report that is was for a stipend if that was the case.

It will not be subject to Self-Employment tax.

Click Federal

Click Wages & Income

Click “See All Income” if needed

Scroll down (PAST SELF-EMPLOYMENT) to “Other Common Income”

Click “Show more”

Scroll down to “Form 1099-MISC”

Click Start

Enter the 1099-MISC and Continue

On the “Describe the reason for this 1099-MISC” screen enter something like “Stipend” and Continue

Select “None of these apply” and Continue

Select “No, it didn’t involve work like main job” and continue through the interview selecting the appropriate answers for a one-time payment to cover expenses and not job related work

The amount from the 1099-MISC will be reported as Other income on the 1040 line 7a, not as Self-employment