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My husband received late payment early 2017 for work done in AZ in 2016, after we had moved to CA the end of 2016. Should this 1099 MISC be reported on AZ return or CA?
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My husband received late payment early 2017 for work done in AZ in 2016, after we had moved to CA the end of 2016. Should this 1099 MISC be reported on AZ return or CA?
It depends. It is Arizona income from the standpoint that it was earned working in that state. If you were also living in Arizona at the time it was earned, then it is claimed exclusively to Arizona. However, if you had already moved to California, and came back to finish a job in Arizona, then it is Arizona nonresident income and California resident income.
Based on your question, it will be easier to claim that income as Arizona nonresident income. While California taxes the income also, they will give you a credit for the tax you must pay to Arizona on that income. Otherwise, you would have to file part-year returns to California and Arizona, which could be a little more complicated to do. (And CA might still ask to tax it).
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My husband received late payment early 2017 for work done in AZ in 2016, after we had moved to CA the end of 2016. Should this 1099 MISC be reported on AZ return or CA?
It depends. It is Arizona income from the standpoint that it was earned working in that state. If you were also living in Arizona at the time it was earned, then it is claimed exclusively to Arizona. However, if you had already moved to California, and came back to finish a job in Arizona, then it is Arizona nonresident income and California resident income.
Based on your question, it will be easier to claim that income as Arizona nonresident income. While California taxes the income also, they will give you a credit for the tax you must pay to Arizona on that income. Otherwise, you would have to file part-year returns to California and Arizona, which could be a little more complicated to do. (And CA might still ask to tax it).
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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My husband received late payment early 2017 for work done in AZ in 2016, after we had moved to CA the end of 2016. Should this 1099 MISC be reported on AZ return or CA?
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My husband received late payment early 2017 for work done in AZ in 2016, after we had moved to CA the end of 2016. Should this 1099 MISC be reported on AZ return or CA?
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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