1099-NEC

Forum|Forum|2 years ago
September 19, 2023
1 reply
8 views

I am helping my son fill out his first tax return. He had an internship in NY during 2022 and earned $6000. The company he worked for paid him as a contractor and issued him a 1099-NEC. We are using Turbo Tax for his taxes and for some reason Turbo Tax is putting $6000 in both a NY and California return, thereby taxing him twice at the state level for the same income.

When I try to put 6000 in as wages in NY it won't let me because it is more than his income (which came from Home Depot). And when I don't put it as wages in NY it puts in CA and charges us twice for the same 6000 income.

Help !

Opus 17

Level 15

Why are you filing both California and New York return? Where is the location of your sons permanent residence? Where was the work actually performed? Where is the company located, if it is located someplace different than where the work was performed?

Also, in some cases, an internship that is arranged by a university for academic credit may be taxed differently than if it was a side gig or self-employment. Was this for academic credit?

TWSinCAAuthor

Level 2

He worked physically in Brooklyn for 2.5 months and was paid for work in Brooklyn. he worked for Home Depot in CA. My thinking was that required two returns. He lived and worked in two states. the internship was not for academic credit.

Any thoughts on how to make Turbo tax not double count the income across states.

Thank you for replying !

Opus 17

Level 15

@TWSinCA

You said your son physically worked in New York, and that he lived in a different state, but that does not seem to be California if that is only where Home Depot is headquartered.

What is your son’s permanent residence or domicile. Every person has one domicile at a time, it is their real and permanent home. It is where they have the majority of their family, social, and financial ties, and it is where they intend to return after any temporary absence. Unless your son is living independently, his state of domicile is probably the same as your domicile.