I live in VT and work virtually, classified as an independent contractor, for a NC company. I received a 1099-MISC for my earnings in 2016. For most of the year, I did all the work remotely; however, I did spend approximately 6 weeks in NC in 2016, directing various events. How do I classify myself?
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No but you will need to select that you earned income from another state under the personal information section (screenshot) because you will need to report the portion of your 1099-MISC income that relates to the work you performed in NC as NC-source income and file a NC nonresident state income tax return related to this NC source income.
When a person works remotely, the income is sourced to where the work is performed (VT) and not where the company is located (NC). However, if you spent time working in NC and received income reported on your 1099-MISC for your time in NC, then you will need to report this income (which will be considered NC-sourced income) on a NC nonresident state income tax return. You can divide the income reported on your 1099-MISC based on your days worked in each state over your total days work for the year.
You will also need to report all income from all sources on your VT resident state income tax return, you will get a credit in VT for any NC state income taxes paid on income that is being taxed in both states.
Since this is self-employment income, you will be able to deduct various business expenses (including travel to NC) related to your 1099-MISC income.
Please refer to this IRS link for more information about Business Expenses.
Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return
Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)
https://ttlc.intuit.com/replies/3300797
No but you will need to select that you earned income from another state under the personal information section (screenshot) because you will need to report the portion of your 1099-MISC income that relates to the work you performed in NC as NC-source income and file a NC nonresident state income tax return related to this NC source income.
When a person works remotely, the income is sourced to where the work is performed (VT) and not where the company is located (NC). However, if you spent time working in NC and received income reported on your 1099-MISC for your time in NC, then you will need to report this income (which will be considered NC-sourced income) on a NC nonresident state income tax return. You can divide the income reported on your 1099-MISC based on your days worked in each state over your total days work for the year.
You will also need to report all income from all sources on your VT resident state income tax return, you will get a credit in VT for any NC state income taxes paid on income that is being taxed in both states.
Since this is self-employment income, you will be able to deduct various business expenses (including travel to NC) related to your 1099-MISC income.
Please refer to this IRS link for more information about Business Expenses.
Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return
Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)
https://ttlc.intuit.com/replies/3300797
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