Do I file State returns for each State I work in that I receive 1099-misc forms for non-employee compensation or can I include in my State of resident return?

[ToddL · Accepted solution]

Actually, you may have to report income and pay tax to both the non-resident states and your resident state. It depends of the filing requirements (income thresholds?) for the non-resident states and whether you had tax withheld on the 1099-MISC.

You will be taxed on your income both where it is earned (non-resident state) and in your resident state. However, your resident state will give you a credit (against their tax) for the nonresident state taxes you paid on  the same income.

(To make sure you get the proper credit for tax paid outside your state of residence, you have to prepare the non-resident state returns first, before preparing your resident state return).

FAQ - When would I have to file returns in more than one state?