Independent Contractor on 1099 - which state?

[gskoehn]

I am an independent contractor and have always filed my state income tax based on the state i was residing in - not where I might have been traveling to for work - or where the headquarters of a given client were.  I moved from CO to GA in 2019 - and my 1099 only reflects a Colorado state payer number and the total amount of my 1099 earnings.  How do I handle this on CO and GA state income taxes? I had expected it would reflect the two different states similar to my husband's W-2 (from an employer in NEITHER CO or GA as he also works remote)

[AmyC]

You report the income based on where you lived regardless of the 1099. If you work remotely and have anything to do with CA, NY, NJ, DE, PA and NE, you may need to file taxes in that state as well. If you have income from any of those states, they want their share as well. Telecommuter and state source income come into play and you may need to check all states where you work or have income sourced there. Please see this link to check state filing requirements.

If so, please carefully follow these directions.

You will need to prepare your returns in a special order. You may need to delete states and begin again.

1. First, prepare your non-resident  return. This creates your tax liability for the non-resident state.
2. THEN prepare your part year resident state CO return 
3. Then prepare your part year resident GA return.

 Your returns may be wrong if you do not prepare the states in this order.

[gskoehn]

Thank you.  So since my 1099 has the amount lumped together - do I divide it as simply as the amount of time I lived in each state?  Or by the specific checks I received while living in each state?

Thankfully I do not have any business relating to any of the states you listed so I have one less headache.

[ThomasM125]

You should allocate the income to each state based on the income you earned while working in that state. It doesn't matter where you lived, the allocation is based on the income you earned while physically working in each state.

[gskoehn]

Based on my invoice date?  Or the date I was paid on an invoice?  And how does CO not try to collect on the entire amount if it's not split out on the 1099?

[AmyC]

CO may try to collect the money that is not theirs. You have the paperwork showing when  you were paid.  Your income receipts are dated. You have moving paperwork. If they send you a letter, send them COPIES to prove that you moved and not all income was earned while there.

Fair warning, more and more states are expanding their rules for who they tax. CA is the latest to tax somebody never to set foot in the state. Be sure to check the states each year, that is a fast moving target!