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Level 2
Apr 27, 2021 1:24 AM UTC
Question

1099 NEC state

I am new to side business.  i received a 1099 NEC this year.  I added it to my federal taxes.  Do I have to include it in Misc Compensation for Pennsylvania State Taxes?    TT asks:  "if your other nonemployee compensation is NOT TAXABLE as PA income, check box.  How do i know if my 1099 NEC is taxable and should be entered?

7 replies

Level 15
Apr 27, 2021 3:36 AM UTC

From PA tax site:

 

Nonemployee compensation on a 1099 refers to money paid to you as an independent contractor rather than as an employee.  You will still need to pay taxes on this money and report it as self-employment income on your tax return. 

Hal_Al
Level 15
Level 15
Apr 27, 2021 11:44 AM UTC

Simple answer: it's taxable unless you know some reason it isn't.  "Side business" is taxable. 

 

See: 

 

https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Gross-Compensation.aspx