We Live in Nebraska, work in Iowa, husband works in Nebraska received a late 1099-misc from Nebraska. Amended taxes to include this, now we owe more iowa tax. Why?

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On the Iowa return, which should have nonresident status selected, then TurboTax will allow you to remove this income as you step through the screens.

You are not required to pay tax on this income to Iowa because you did not live or earn the money from Iowa. Do not mail the amended return to Iowa. As long as you have a copy of the original return for you files, you can ignore this.