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Do I have to file state tax returns for every state I was an independent contractor in with my 1099-misc forms?

I am a nurse who does contract work in multiple states for health screenings, flu clinics, etc. Do I have to file separate state tax forms for each state the clinics were held in?

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Lucinda
New Member

Do I have to file state tax returns for every state I was an independent contractor in with my 1099-misc forms?

Yes.

If you have 1099-MISC's for multiple states, you will need to file a state return for each state that you for which you have tax withheld.  Every state has its own rules about how they tax individuals, and those rules can be confusing.

Some states are nice in recognizing other states where you have paid income taxes, a few will tax your out-of-state income even when it was taxed in another state.

Every combination of states has different situations. Please keep this in mind as we cover multiple state tax issues. You may also need to dig into the regulations in each of your states to figure out what should happen, and it may not always appear fair.

After your federal taxes are completed, do your state tax returns in this order:

  1. Your nonresident state(s) and/or any part-year resident states, then
  2. Your resident (home) state last.

The reason for this order is to have taxes from the nonresident state(s) flow to the resident state to maximize credits or deductions for taxes already paid in other states.

Even if taxes are not owed, it may be desirable or necessary for taxpayers to file a state tax return to get refunds or to claim business losses that can be carried forward to future years.

If you don't already know, first see if your state(s) collect income taxes. See States That Don't Collect Income Tax.

Generally, if the state you reside in has an income tax, you have to file a tax return with that state, as well as in any other taxable states where income is generated.

If you're not sure, see if a particular state requires a tax return for income from their state, see State Taxing Agency Contact Information. Often, there will be a minimum amount of income required before you have to file a tax return. Check the rules for your state(s).

When you have income from multiple states, see if your states have a reciprocal agreement. See What is a Reciprocal State and How Does That Work?

Having a reciprocal agreement means the two states agree that each will not tax the same income. And yes, there are a few states where both will do that. Even most states without reciprocal agreements at least allow a credit for taxes paid in another state. Again, check the rules in the states you earned income in.

Below are additional helpful links with information on filing multiple state tax returns.


Forms availability:

https://ttlc.intuit.com/questions/1908857-state-forms-availability-for-turbotax-online-and-cd-downlo...

I hope this helps.



View solution in original post

2 Replies
Lucinda
New Member

Do I have to file state tax returns for every state I was an independent contractor in with my 1099-misc forms?

Yes.

If you have 1099-MISC's for multiple states, you will need to file a state return for each state that you for which you have tax withheld.  Every state has its own rules about how they tax individuals, and those rules can be confusing.

Some states are nice in recognizing other states where you have paid income taxes, a few will tax your out-of-state income even when it was taxed in another state.

Every combination of states has different situations. Please keep this in mind as we cover multiple state tax issues. You may also need to dig into the regulations in each of your states to figure out what should happen, and it may not always appear fair.

After your federal taxes are completed, do your state tax returns in this order:

  1. Your nonresident state(s) and/or any part-year resident states, then
  2. Your resident (home) state last.

The reason for this order is to have taxes from the nonresident state(s) flow to the resident state to maximize credits or deductions for taxes already paid in other states.

Even if taxes are not owed, it may be desirable or necessary for taxpayers to file a state tax return to get refunds or to claim business losses that can be carried forward to future years.

If you don't already know, first see if your state(s) collect income taxes. See States That Don't Collect Income Tax.

Generally, if the state you reside in has an income tax, you have to file a tax return with that state, as well as in any other taxable states where income is generated.

If you're not sure, see if a particular state requires a tax return for income from their state, see State Taxing Agency Contact Information. Often, there will be a minimum amount of income required before you have to file a tax return. Check the rules for your state(s).

When you have income from multiple states, see if your states have a reciprocal agreement. See What is a Reciprocal State and How Does That Work?

Having a reciprocal agreement means the two states agree that each will not tax the same income. And yes, there are a few states where both will do that. Even most states without reciprocal agreements at least allow a credit for taxes paid in another state. Again, check the rules in the states you earned income in.

Below are additional helpful links with information on filing multiple state tax returns.


Forms availability:

https://ttlc.intuit.com/questions/1908857-state-forms-availability-for-turbotax-online-and-cd-downlo...

I hope this helps.



Anonymous
Not applicable

Do I have to file state tax returns for every state I was an independent contractor in with my 1099-misc forms?

what if I have a 1099-MISC from an agency that assigned me to job-sites in multiple states?  Do I split the 1099-MISC amount accroding to which money was earned in each state?
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