I’m a CAD citizen who lived in the US until June 2018. After I left, I worked part time and received a 1099 from my NY employer. Do I pay tax on this federally and to NY?

[KarenJ]

Are you a Canadian citizen?  When did you first come to the US?

[carolyn-roche]

Hi! Thanks for the response! Yes I’m a Canadian citizen and moved to the US in June of 2015 and left in June of 2018 (and moved out of my rental apartment and took all my belongings with me). After I left I continued to do some freelance work for my company which is based in NYC but I was not living or presently in the US at the time (I was living in Europe temporarily before moving back to Canada). So I’m trying to clarify if I declare that freelance work as being NY resident or not. Thank you!

[KarenJ]

Thank you.  I was trying to determine what type of US tax return you should file.  You will need to include you NY 1099MISC income on your federal and NY state tax return.

You can either file a full year US resident return including your worldwide income for calendar year 2018 or you can file a dual status (part year resident and part  year nonresident ) tax return. 

The downside of the dual status return is that it is complicated and you are not allowed to use the standard deduction (you can only use itemized deductions) and cannot use the married filing jointly filing status (if you are married).  You can only use married filing separately or single filing status.

If you file a full year resident return you can utilize foreign tax credit on your US tax return to help offset any double taxation on your Canadian income or foreign income you earned after leaving the US in 2018.  If you file a full year resident return you file a part year NY return and for NY you will only include income that is NY sourced income and income you earned while living in NY.

[carolyn-roche]

Thank you! Yes I listed my 1099-MISC and stated I was a non resident in the TurboTax form. But what I’m confused about is the question of how I allocate this. Do I allocate it as NY state income since it was paid from a NY company or not NY income since I had moved out of NY and the US when I earned it? Thank you again!