I do part time contract work for a company based in Utah, and received a 1099 NEC for an assignment where I worked in Virginia. My full time residence is Florida. Do I have to pay Virginia income taxes? There is no record that I can see where Virginia Dept of Revenue receives information on me since the Virginia entity for whom I did the service pays the Utah contracting company. Unless that contracting company has to report to every state from which it received income for its contracts and names the contractee?
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Maybe, if the income is Virginia sourced, you would file a non-resident return for VA, if required. How to file a non-resident return.
Filing requirements for VA nonresidents:
Filing Status Income Threshold
Single or married filing separately $11,950
Married filing jointly $23,900
You are not required to file if you don't owe any taxes and will not receive a refund. Don't file the return in this situation. Normally, your resident state will give you a credit for taxes paid to another state. However, since FL does not tax income tax, there is no credit available.
The issuer reports 1099-NEC income to both the IRS and to the State's Department of Revenue.
Taxable income from Virginia sources includes "income from the practice of a trade or business in Virginia" and includes, but is not limited to, wages and salaries earned while in Virginia, income from a business operating in Virginia, rental income from a property in Virginia, etc.
OK thanks for that.
However, I asked the issuer issuer of the 1099 to use my PLLC (an S Corp with me as the single shareholder). So does my S Corp have to file the Virginia state tax in that case?
The S Corp issues me a K1 that I use in my personal return of course. It also gives me a W2 as the only employee/officer of course. I don't think any of that matters but added the info in case you were wondering.
Thanks
You need to file a Virginia Non-Resident return for your S-Corp, and issue yourself a Virginia K-1. You performed services in Virginia, so the income is taxable by Virginia.
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