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Level 2
posted Mar 5, 2025 11:37:20 AM

1099 MISC vacation pay?

I live in NJ and I received a 1099 MISC from my employer from NY for vacation pay, which state do I pay taxes to on this money? 😕

 

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1 Replies
Employee Tax Expert
Mar 5, 2025 12:17:03 PM

NY and NJ but you will get a credit for taxes paid to NY on your NJ return.  Since you work in NY this is NY sourced income.

However, this income should not be reported on a 1099,  vacation pay is considered employee wages and should be included on your W-2.  You will need to ask your employer to make the correction so that the income is properly included as employee wages.