I received a 1099 for work earned in NV where there isn't a state tax, but live in CO. Do i have to pay state tax on it?

[freecleanwater]

I flew to NV for the 3 week assignment for a NV business.

[LenaH]

Yes. As a Colorado resident, all of your income (no matter where it is earned) is taxed by your resident state. Since Nevada does not collect an income tax on individuals, there is no requirement to file a NV State Income Tax Return. 

If you would like to enter your 1099-NEC, you may use this shortcut in TurboTax to get to the right page: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Add a 1099-NEC.
5. Enter the information as shown on your form. 
6. Follow the on-screen instructions. 

[freecleanwater]

Thanks for the prompt response. So hypothetically, had I travelled to California to work for a CA co., I would have to pay sales tax to both CA and CO on that 1099 income?

[RaifH · Accepted solution]

Yes, assuming we are talking about income tax, not sales tax, you would pay taxes to both California and Colorado in that hypothetical situation. However, you would get a credit on your resident return for the taxes paid on your non-resident California return up to the amount that your resident state would have charged you for that income. When everything is done correctly, you are not being double taxed but paying at the rate of the higher tax state. 

@freecleanwater [Edited 02/14/2022|4:55 AM PST]