1099 Consultant working remote from Texas

[sstax]

Hi,

I've an LLC in Texas and worked for a consulting company based in CA last year as a 1099 consultant for a part time project for 3 months.  The client for whom the services were rendered was in NY state.  I worked remotely from TX and was never onsite at NY.  Do I owe NY state tax for this work?

Thank you!

[ErnieS0]

Probably not. New York taxes income from services performed in New York State or a a business, trade, profession, or occupation carried on in New York State.

It sounds like your client was the California consulting company rather than the New York company. To provide a better answer, someone would have to know more about why type of services you performed and how much direct interaction you had with the NY company.

New York Source Income of Nonresident Individuals, Estates, and Trusts, and Part-Year Resident Indiv...

[sstax]

Thank you for your response.  I was an IT consultant.  My interaction was directly with the NY client, not the CA company.  But, the payment was through the CA company.  

[ErnieS0 · Accepted solution]

I think you are in a grey area that can go either way. My view is that you have a closer connection to the New York client that the California company so you would pay NY tax. But it can be argued either way.

You could discuss you situation in detail with a New York accountant or tax attorney, file and pay tax to New York and then file an amended return asking for it all back. An amendment is like an appeal, so there is no penalty if you were fully paid up and your amendment is denied. So you could simply not file in NY and see what happens.

New York Source Income—Sole Proprietorships and Partnerships

[sstax]

That helps.  Thank you so much!