My wife worked a part time job where she was paid as an Independent Contractor. She received a 1099-MISC for the work she did in 2019. We then moved from CA to CO. The work was done while we were in CA. However, the 1099-Misc is listing her residence in CO. How do I complete the filing to reflect that she worked and earned this compensation while we resided in CA and not CO. My assumption is that we would pay CA taxes on this income and not CO taxes. Please advise,
if nothing is listed in the state information boxes, (16-18) I wouldn't worry about it listing her residence as Co.
you need to file state returns in Ca and Co. for the CA return show her comp but not for Co. if the state info boxes show it as Co comp you'll need the employer to issue a corrected 1099.
The form has CO as her residence. Which is strange to me to me because it makes it seem like she performed the work in Colorado. Which isn't the case--the work was completed while we resided in CA. Does that make sense? I should be paying CA taxes for this and not CO. Do I need to have the former employer correct the 1099-MISC?
Do line 16-18 impact where the taxes are paid?
Hackitoff is right that it does not matter what her mailing address is on the 1099-MISC - in fact, it should be your current location (or else she would not have gotten the 1099-MISC in the mail).
To answer your last answer, boxes 16-19 report how much tax was withheld and for what state. It is a report on what actually happened, not what you think should have happened.
If these boxes are blank, then no taxes were withheld (which is the usual case for contractors).
If the 1099-MISC shows withholding for Colorado, you can try to get a corrected 1099-MISC, but since the 1099-MISC means that the company has already sent the withholding to Colorado, the company (and Colorado) are not likely to want to change this.
You have to do both state returns anyway, so just enter the 1099-MISC as is and you will pay CA tax when you allocate this income to CA in the CA TurboTax interview.
**Mark the post that answers your question by clicking on "Mark as Best Answer"