Hello All,
I have a semi-unique tax situation, I think. Hopefully you all can help me because I have been researching tirelessly to find answers.
Last year, I lived in NYC from 1/1/19 to 6/30/19. While living there I rented my apartment and worked a full-time job. I have since received a W2 for those earnings, simple enough.
From 7/1/19 to 12/31/19, I lived (and currently still do) in Vermont. I moved to VT to take care of my Mother and am living with her while doing so. When I moved here I decided to sell on Ebay as my sole source of income. Nothing major, mainly my personal possessions, which I ended up taking a loss on. However, I did sell some clothing which I purchased with the intention of making a profit. When I moved to VT, I changed my mailing address to be my Mother's post office box and also registered a car in VT, which I purchased shortly after moving. The address I used on the registration was my Mother's physical address, not her post office mailing address.
The resulting Paypal payments made to me from the aforementioned Ebay sales were $7,943, by way of 100 transactions. This is below the Federal threshold of $20,000 in sales AND 200 transactions for 1099K reporting, but above the VT threshold of $600. With that being said, Paypal generated a 1099K, due to me having changed my mailing address to be a VT mailing address. I have figured out my total expenses and resulting net profit to include in my tax filing for those Paypal payments.
With all that being said, I am not sure how to proceed. I obviously plan on filing in NY state for my wages earned in NYC, for which I received a W2. I did not work anywhere in VT for which I would receive a W2, my only income was through Ebay sales, and only after July 1st. I did have some Ebay sales prior to July 1st, which was when I was still living in NYC. These sales were also indicated on my 1099K for the months January-July.
Do I need to file in VT as well as NY due to my 1099K being auto-generated as a result of my VT mailing address (also my car registration)?
Do I claim partial residency in NY and partial residency in VT? My time spent in each state is exactly six months each, however, I do not technically live in VT due to not having a job here or renting a property of any kind. I feel like I'm going to take a major hit filing in both States. I was on course to have a nice refund but it is taking a nose-dive as I trudge through the TurboTax software.
Do I file my 1099K earnings with just VT and not Federal because I am above the VT threshold but below the Federal? Is that even possible to do? And if so, how do I do it?
In years past I have just had to file taxes using W2's while having lived only in NYC, which was very straightforward. I have never dealt with 1099's or multi-state residencies before.
Apologies for such a long-winded question, but as there are a lot of factors at play here, I felt it was needed in order to paint the entire picture.
Any and all help is greatly appreciated!
