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I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

 
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rjs
Level 15
Level 15

I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

If you live and work in Florida you will not pay any state income tax. As I said in my reply to your other question, the people in Massachusetts that you work with are not your clients. The company that pays you and gives you a 1099-NEC is your client. The people in Massachusetts are that company's clients. But it doesn't matter where the company that pays you is located, or where that company's clients are located. If you live and work in Florida as a sole proprietor you would not have any state income tax.


Florida does have a corporate income tax, but it would not apply to you doing business as a sole proprietor.


(California would be an exception. California taxes anyone who provides services to a person or company in California, even if the person providing the services is not in California. I don't think any other state does that. So if California is not involved in your situation, what I said above remains true.)


Note that if you move from Rhode Island to Florida during the year, you will still have to pay RI tax on any income that you earn while you either live or work in Rhode Island. You will have to file a RI part-year resident tax return for the year that you move.

 

If you have further questions about your state tax situation, please add a reply in this thread. Do not post another separate question related to your state tax situation. When information is scattered in multiple threads it's confusing and hard to follow, and hard to see the whole picture.

 

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4 Replies
rjs
Level 15
Level 15

I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

Earlier today you posted a question saying that you live and work in Rhode Island. Now you say you live and work in Florida. What's going on?


If you want good tax advice, you have to provide accurate and complete facts.

 

I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

I am evaluating possibility of relocating to the warmer weather Florida. 

rjs
Level 15
Level 15

I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

If you live and work in Florida you will not pay any state income tax. As I said in my reply to your other question, the people in Massachusetts that you work with are not your clients. The company that pays you and gives you a 1099-NEC is your client. The people in Massachusetts are that company's clients. But it doesn't matter where the company that pays you is located, or where that company's clients are located. If you live and work in Florida as a sole proprietor you would not have any state income tax.


Florida does have a corporate income tax, but it would not apply to you doing business as a sole proprietor.


(California would be an exception. California taxes anyone who provides services to a person or company in California, even if the person providing the services is not in California. I don't think any other state does that. So if California is not involved in your situation, what I said above remains true.)


Note that if you move from Rhode Island to Florida during the year, you will still have to pay RI tax on any income that you earn while you either live or work in Rhode Island. You will have to file a RI part-year resident tax return for the year that you move.

 

If you have further questions about your state tax situation, please add a reply in this thread. Do not post another separate question related to your state tax situation. When information is scattered in multiple threads it's confusing and hard to follow, and hard to see the whole picture.

 

I get 1099 NEC from a CO. If I live and work from FL via Zoom with clients who live in MA, do I pay tax to MA or am I exempt since FL is no St tax?

Thanks for the very clear explanations and answers. It was very helpful. 

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