Hello.
I'm a Maryland resident.
I was paid by a company in Nevada on a W-2 for work performed in Maryland. Am I required to file a return with NV for this income? Only Social Security and Medicare taxes were withheld.
I was paid by a company in Pennsylvania on a 1099-NEC for work performed in Maryland. Am I required to file a Pennsylvania return for this income? No taxes at all were withheld. The software classified this as business income. I pay a fee for the personal use of my company car. Can I deduct part of that fee as a business expense against this income?
Thank you.
No, you don't have to file a Nevada return because Nevada doesn't have a state income tax.
You don't have to file a Pennsylvania return as long as the work was performed in Maryland.
Since the 1099-NEC is business income, you can deduct business expenses against it. However, if you are paying for the personal use of a company car, you can't deduct that as it is for personal use.
Thanks.
I ran Smart Check on my federal return, and it's making me fill out a Schedule C with some questions I don't know how to answer. This is on income I received from a company I was a temporary employee of, not the owner of.
- Is this a qualified trade or business under Section 199A? Don't know the answer.
- If this business was operated by taxpayer / spouse / jointly. It's making me check one.
Line B: Enter principal business code. Don't know the answer. QuickZoom doesn't work.
Line C: Business Name (and address). I entered the info from the 1099-NEC.
Line D: Employer Identification Number. Is that the same as the TIN from the 1099-NEC?
Line F: Accounting method. Don't know the answer. I was paid with a check.
Line G: Did you materially participate in the operation of this business during 2021? Don't know the answer.
Line I: Did you make any payments in 2021 that would require you to file Form(s) 1099? Don't know the answer.
The IRS presumes that 1099-NEC income is self-employment income that is subject to:
You are answering questions to generate a Schedule C.
Is this a qualified trade or business under Section 199A? Don't know the answer.
The income reported on 1099-NEC likely qualify as a trade or business.
If this business was operated by taxpayer / spouse / jointly. It's making me check one.
If the 1099-NEC has your name and Social Security number, the business is operated by you.
Line B: Enter principal business code. Don't know the answer. QuickZoom doesn't work.
Principal business code may be found here on page C18.
Line C: Business Name (and address). I entered the info from the 1099-NEC.
Enter your name and address not the name and address of the payer.
Line D: Employer Identification Number. Is that the same as the TIN from the 1099-NEC?
You probably do not have an employer identification number if you do not have an ongoing business. Do not enter the TIN of the payer.
Line F: Accounting method. Don't know the answer. I was paid with a check.
Select cash basis.
Line G: Did you materially participate in the operation of this business during 2021? Don't know the answer.
You did materially participate.
Line I: Did you make any payments in 2021 that would require you to file Form(s) 1099? Don't know the answer.
You likely did not prepare W-2's, 1099-MISC's or 1099-NEC's reporting payments to other taxpayers.