1099-NEC reporting to NYS as nonresident

[kvlandau]

Hello -- I am a full-time resident of IL. I worked as a consultant for a museum in NYS, and they gave me a 1099-NEC. A small portion of the work was performed at the museum itself in NY, and 90% has been done at home in IL. Our income exceeds the standard NYS deduction. First, do I need to file in NYS as a non-resident? And second, if so, do I report the 1099-NEC on NY's IT-2 form (it says it's only for W2s)?

[TomD8]

Only the portion of income that you earned from work you actually performed in New York State is taxable by New York.

You must file a New York non-resident tax return (NY Form IT-203) if your NY-adjusted federal income exceeds your NY Standard Deduction.

https://www.tax.ny.gov/pit/file/nonresidents.htm

[kvlandau]

Thanks. How do I report the 1099-NEC to NY? It seems they are only asking me for a W2. (I also have to file in a third state, and that state is very specific about needing a copy of the 1099-NEC and a reporting form to go with it.)

[TomD8]

@kvlandau --

Be sure to indicate in the My Info section of TT that you had Other State Income from NY.

Enter the 1099-NEC on the federal side of TT and the information should pass to your state return(s).

[kvlandau]

Ah - I am doing the NYS return by hand so I don't have to pay for another state through TT!

[TomD8]

Be sure to enter the 1099-NEC as Business Income (Line 6 of NY Form IT-203).

Self-employment income is considered business income, not wages or salary.

[kvlandau]

Thanks for your help - this is also where it gets confusing. I worked as a consultant on a one-time gig. I am not self-employed nor do I own my own business. I'm an academic researcher.

[TomD8]

The TurboTax help article explains how to enter a 1099-NEC into the program. 

What is a 1099-NEC? (intuit.com)

I'd suggest you make sure you entered the form correctly on your federal return before you go to the NYS return.

[kvlandau]

Yes, thank you, got it! But I am going to mail in my NYS taxes and not submit them through TurboTax. I am trying to figure out how/whether to send my 1099-NEC to New York. It seems that the IT2 form is only for W2s. I am reporting my 1099-NEC as other income on IT203 line 16 (I am not self-employed nor own a business). Any tips? 

[TomD8]

You're correct, NY Form IT2 is only for W2's.

If you want to report your 1099-NEC income as Other Income and not as self-employment income, make sure that it appears on Schedule 1, Line 8z of your federal return and not on Schedule C.  You want your federal and NYS returns to be consistent with each other.

NY requires that self-employed individuals submit a copy of their 1099-NEC with their tax return.  I can't find a corresponding instruction for those reporting the 1099-NEC as "Other Income."

[kvlandau]

Yes! That's exactly where it appears on the federal forms, thank you.

Any creative ideas for getting the 1099-NEC to NY? I'll just include a copy of it in the mailing...?

[AliciaP1]

If you are reporting your 1099-NEC as Other Income, you are not required to mail it in with your return.

@kvlandau