Question

State taxes for 1099-Misc

Forum|Forum|5 years ago
June 25, 2020
2 replies
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I am a college student who received a $5500 fellowship from a Virginia based non-profit organization called the American Association of Physicists in Medicine (AAPM), and received a 1099-Misc form from them. On the 1099-Misc, the $5500 was in box 7 (Nonemployee compensation).

However, all work for the fellowship was preformed in New York for Memorial Sloan Kettering Cancer Center (MSKCC). MSKCC is not related to AAPM and did not provide any of the money I received for the fellowship.

Do I have to file state taxes for the money received from this fellowship and if so do I file the taxes in VA or NY?

B

Bsch4477

Employee

Since the work was done in New York you would pay tax on that income there if you have a filing requirement. The IRS considers you to be self employed for that income so you would be completing Sch C and will owe self employment tax on that income.

O

Opus 17

Employee

@Bsch4477 wrote:

Since the work was done in New York you would pay tax on that income there if you have a filing requirement. The IRS considers you to be self employed for that income so you would be completing Sch C and will owe self employment tax on that income.

Probably not self-employed if this was an educational fellowship, even though it was reported in box 7. Needs follow up information.

O

Opus 17

Employee

First, where did you perform the fellowship, and what is your state of residence?

Second, what was the nature of the fellowship? You obtained this through college and it was part of your educational experience?

Your state of residence is where you are domiciled, where you permanently lived in 2019. It might be NY, or it might be your home state if you are a college student and still live at home over the summer (you are considered "temporarily" away from home in that case.)

If your official residence is not in New York state, did you live or work in NYS more than half the year? (183 or more days?)

You will owe income tax either where you performed the work (NY) or where your permanent home is, or both. You won't owe VA tax if your only connection to VA is that is the headquarters of the organization that funded the fellowship.

O

oskAuthor

My state of permanent residence is Michigan. I was only in NY for the fellowship during the summer (about 10 weeks). The fellowship was educational (it is called the "AAPM Summer Undergraduate Fellowship Program"), but I did not obtain it through my school, I got it through AAPM (mentioned above).