Allocating 1099 wages to New York

[uschles]

Hi everyone,

For a period of two months, I provided consulting services to two New York based companies. I did the work out of my home in New Jersey and haven't visited their offices even a single time during this time. I received payment as 1099-NEC.  I should also point out that the work I did was in addition to doing full time W-2 work I did for another company (based out of Ohio).

How do I allocate these wages to New York? Based on where they came from? (in this case, it's 100%). Based on the time I spent in the office? (in this case, it's 0%). Is there another consideration?

Many thanks

[uschles]

Hello.. hoping someone would know the answer to this.

[DianeW777]

No, you do not have to file a New York (NY) nonresident return if you have income from your self employment remote work and you are not an employee of a NY company.

• NY Filing Requirements: nonresident with income from New York State sources.
• Is my remote work taxable to NY State?

It seems clear you are not required to file, Review the details in the last link above to be sure you qualify as a nonresident without NY source income.

@uschles 

[uschles]

Thanks again. I think I understand.

The link you shared says "NY Filing Requirements: nonresident with income from New York State sources." - the only details that could be potentially relevant are
"You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.". I don't fully understand this. Based on the list, my situation is '$16,050' and the income I got exceeds that. But I also don't fully understand the consequence of that. So I still don't require to file to New York?

Thanks again for all the help.

[DianeW777 · Accepted solution]

No, you do not have to file a New York (NY) nonresident return if you have income from your self employment work and you are not an employee of a NY company. Even though you have income from a NY company in your capacity as a self employed contractor, you don't fit the criteria of a NY remote employee, because you have a business that is located outside of NY and you do not work for a company situated in NY as an employee.

It's easy to confuse employee remote worker with a self employment activity that is not situated within NY.

@uschles 

[uschles]

Got it, thank you for all the help!