How to Allocate Income on 1099-INT, 1099-DIV, 1099-B to the Correct States?

I have a foreign friend with US green card. He lived oversea the whole year in 2021.

He has some investments in US and got a bunch of 1099-INTs, 1099-DIVs, 1099-Bs. He said payers' addresses on these forms were in California, New York, Missouri.

(1) Does it mean he had income from 3 states' sources and had to file all these 3 state tax returns, even if he lived abroad the whole year?

(2) Does the payer's address state on these forms decide where the income should be allocate?

365

Level 15

Sep 15, 2022 7:37:02 PM

Q 1. Does it mean he had income from 3 states' sources and had to file all these 3 state tax returns, even if he lived abroad the whole year?

A 1. No.

Q 2. Does the payer's address state on these forms decide where the income should be allocated?

A 2. No.

Where the payer is does not matter, for that type of income (interest, dividends and capital gains). If he is considered a resident of a state, he reports that income on his resident state tax return, only.

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How to Allocate Income on 1099-INT, 1099-DIV, 1099-B to the Correct States?