Schedule C and 1099-NEC

[ziperof]

Hi there, I live and work in State A, but have been doing freelance web design work for a company in State B for the majority of 2020 in addition to my primary job here in State A. 

Do I need to claim my income from my 1099-NEC in State B as a non-resident, or can I just claim my freelance income and whole Schedule C in State A?

I'm now asking because I just did my State B non-resident form, and when getting to State A it offers me the option to exclude my Schedule C, and in trying to find out why I would do that - something came up that suggested I may not have to file in State B at all? Now I'm just utterly confused. Thanks for the assistance!

[DaveF1006 · Accepted solution]

It depends. If you perform all of your work in State A, then you should not have to file a non-resident return for work performed for a company that is located in State B. What matters is in what state you earned the income. If all your work was in State A, you do not need to report your income to another state regardless of where your employer is located.

If you performed the work in State B, you will need to file a non-resident return for that state, unless that state has a reciprocal agreement with State A. State A, where you reside, will want you to report all of your income regardless of where earned, but some states give will give credit for taxes paid to another state. States that have reciprocal agreements are where you do not need to file a non-resident return even if you worked in the other state. Please see a list of states that have reciprocal agreements here. 

[ziperof]

Hi Dave,

Thanks for the help. I've done 100% of my freelance work while living in State A and haven't been to State B for anything work-related at all. So it sounds like I should only file in State A. Thank you!

[tim2211]

I want y'all to do my 2019_and 22020 need to talk to a person 

[VolvoGirl]

You have to do each year separately. Turbo Tax is a do it yourself program.

 For 2020 you can use the Online web version or buy the Desktop CD/Download program.

For 2019

Sorry, Online for 2019 and prior is closed now so you can not start a new 2019 or prior return or finish one. Online is only for 2020. Oct 15, was the last day to efile.  2019 is now the prior year. If you entered 2019 into the 2020 online version you should clear out your online return so you can use it for 2020.
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-clear-and-start-over-in-turbotax-onli...

Or How to file a prior year
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-prepare-a-prior-year-tax-return/00/25...

You can only buy the download for prior years. You have to buy a separate program for each year. They only sell the last 3 years. You need a full Windows or Mac computer to install it on. Buy the download here
https://turbotax.intuit.com/personal-taxes/past-years-products/

You have to print and mail prior year returns. When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS received the return. Don’t forget state.

Important! Mail Federal and State in separate envelopes and mail each year in separate envelopes.

If you are getting a refund, there is not a penalty for filing past the deadline. You have 3 years to file for a refund. If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.

If you want to file for free you can fill out the forms by hand. Here are some basic forms…..

Here is the IRS 2019 Form 1040
https://www.irs.gov/pub/irs-prior/f1040--2019.pdf

or if you want bigger type use 1040SR for Seniors,
https://www.irs.gov/pub/irs-prior/f1040s--2019.pdf

And 2019 Instructions https://www.irs.gov/pub/irs-prior/i1040gi--2019.pdf

2019 Tax and EIC Tables
https://www.irs.gov/pub/irs-prior/i1040tt--2019.pdf

Sch 1 : https://www.irs.gov/pub/irs-prior/f1040s1--2019.pdf
Sch 2 : https://www.irs.gov/pub/irs-prior/f1040s2--2019.pdf
Sch 3 : https://www.irs.gov/pub/irs-prior/f1040s3--2019.pdf

Then when you do file 2020 enter 0 for the 2019 AGI since you are filing 2019 late.

I have links for other years too.