I received a 1099 from another state, do i claim income in that state?

[MichaelMc]

The answer to your question depends on several factors. Form 1099 is actually a family of forms that are used to reports broad categories of income, including interest, dividends, rents, prizes, royalties, and non-employee compensation. 

I am going to assume you have a Form 1099-MISC. Whether you have income in another state is going to revolve around the issue of where the income was earned, not where the issuer of the form is located.

For example, if your 1099 is from a publisher, for royalties that you earned by writing a book from your home, you earned that income in your home state. Likewise, if you received non-employee compensation for work that you did online, regardless of where your client is located. 

Conversely, if you earned non-employee compensation by crossing the state line to work at your client's facility for several days (or weeks), you earned income in that other state, and will need to file a nonresident income tax return to pay taxes only on what you earned in that state. The same would be true if you earned rents from property located in that state, even if you were never personally present.

[rfp1951]

Regarding paying taxes in another state based on a 1099 MISC issued by a company with whom you contract. We receive royalty payments on mineral rights in another state. Our contract is with an extraction company based in yet another different state. Must we pay taxes on the royalty payments in the state where the actual extraction occurs?

[TeresaM]

It depends, if you performed work in that state and were issued a Form 1099, then it is likely you will need to file a state income tax return for that state.  It will depend on the type of Form 1099 and the amount of that state's requirement to file a return. 

If you were working remotely in one state, and received a Form 1099 from that company in another state, generally it is taxed in the state where you are located when you do the work. 

You can open up a return for that state in TurboTax and complete the information. If you are not required to file, you can then delete that part of the return. 

[jencapaldi]

i received a 1099 nec form. i live and work in nj however my 1099 nec is from pennsylvania. the box 6 is blank. do i need to file for both nj and pennsylvania?

[rfp1951]

Is income listed in Box 7? If Box 6 is blank and no income is listed in Box 7, but the sender is simply from a different state, then I would say no. You do not need to file in the state of the sender. But I'm not a CPA.... FYI

[MonikaK1]

Re: 1099nec from Pennsylvania

Pennsylvania Personal Income Tax law provides for a withholding obligation for certain payors of Pennsylvania-source income, including payments of Pennsylvania source non-employee compensation. See here for more information. If there was an amount withheld, it appears that the income was considered Pennsylvania-sourced and you would need to file a Pennsylvania state return. 

Every resident, part-year resident or nonresident individual must file a Pennsylvania Income Tax Return (PA-40) when he or she realizes Pennsylvania income generating $1 or more in tax, even if no tax is due (e.g., when an employee receives compensation where tax is withheld). See here for more information.

Check with the payer for details and for the state ID number. 

Otherwise, if you only lived and worked in New Jersey, you didn't have Pennsylvania taxes withheld and there is no PA state payer ID, then you shouldn't need to file a Pennsylvania state tax return just because there is a Pennsylvania address on Form 1099-NEC. 

[rfp1951]

I do not do work in that other state. I simply own mineral rights. To perhaps explain more clearly:

- I live in State A

- Our mineral rights are in State B

- The company leasing the mineral rights is in State C

We work with three different OG companies, same distributions of States. Only one listed State B on the 1099, but they issued a corrected 1099 omitting with 00.00 income in Box 18. 

I was further advised to not file in State B, only State A

[jencapaldi]

does this apply for 1099 nec that i can delete or even though turbo tax told me to do it. i live and work in nj but my 1099 nex has pennsylvania address. no state marked in box 6. 

[jencapaldi]

there is no state listed in box 6 either and turbo tax is asking for one. see to be very confusing this year with this 1099 nec. i would assume the state of is pennsylvania since the address is pennsylvania. 

[LindaS5247]

The State would be the Payer's State, per Box 6 instructions.  Is your Payer in PA?

Form 1099-NEC Box 6 – State/Payer's state no. (number) “In box 6, enter the abbreviated name of the state and the payer's state identification number. The state number is the payer's identification number assigned by the individual state” for state filing.

Click here for more information on Form 1099-NEC.

[ErnieS0]

New Jersey residents are taxed on income earned everywhere. 

When you say your 1099-NEC is from Pennsylvania, do you mean the payor is located in Pennsylvania or is your address listed as Pennsylvania?

Either way, it does not matter.

You are taxed according to where you live and work. If you lived and worked in NJ, then all your income is taxed by NU and you have no PA income. 

If you work in both NJ and PA, then any income you earn in PA is taxable to Harrisburg. You would file a resident NJ resident and a nonresident PA return.

TurboTax will not ask for your state if you leave Boxes 5-7 blank. Try deleting and reentering your 1099-NEC without any entries in Boxes 5-7. TurboTax will transfer your 1099-NEC income to NJ without a state code.

@jencapaldi