Out of State Filing Status

[fburglee]

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.

[JulieS]

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.  

[fburglee]

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.

[JamesG1]

The IRS presumes that 1099-NEC income is self-employment income that is subject to: 

• Self-employment income computed on Schedule SE. as well as
• Income tax computed on IRS Form 1040. 

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.