You would only need to pay taxes to the IRS and your resident state. Since you received a Form 1099-MISC, you are treated as being "self-employed" or owning your own business as would need to file a Schedule C with your tax return. So, you can deduct expenses related to earning that income such as a home office, supplies, etc.
You can add information for your self-employment (your own business) to the Schedule C for your Form 1040 by following the directions below. (Please note: you may decide to upgrade to the Self Employed edition to help you enter all of your business income and expenses)
You can walk through the interview to enter your income (including both your 1099-MISC, if any, and other income received) and the expenses related to generating that income.
I've also pasted a FAQ below on what a Schedule C is and how it relates to your business.
You would only need to pay taxes to the IRS and your resident state. Since you received a Form 1099-MISC, you are treated as being "self-employed" or owning your own business as would need to file a Schedule C with your tax return. So, you can deduct expenses related to earning that income such as a home office, supplies, etc.
You can add information for your self-employment (your own business) to the Schedule C for your Form 1040 by following the directions below. (Please note: you may decide to upgrade to the Self Employed edition to help you enter all of your business income and expenses)
You can walk through the interview to enter your income (including both your 1099-MISC, if any, and other income received) and the expenses related to generating that income.
I've also pasted a FAQ below on what a Schedule C is and how it relates to your business.