I live in Nevada. My single member LLC is registered in Nevada. I did few jobs in Arizona last year as a subcontractor. I received one 1099 MISC (2500$) from the company located in Arizona and another 1099 MISC (8800$) from the company with mailing address in California (I didn't worked in California, the job was made in Arizona). Do I have to file a state tax for Arizona or California?
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You have to file an Arizona nonresident tax return. The money that you earned for work that you did in Arizona is Arizona source income and will be taxed by Arizona.
You do not have to file a California tax return. What matters is where you did the work, not where the paying company is located. (You might get a letter from California saying that they think you had California income. If so, you will have to reply to the letter explaining that you did not work in California.)
Thank you. It helped me a lot!
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