When it asks “did I make money in another state” do I say yes when I have a 1099-NEC form? It was a one time gig?

Yes, you may have to file both New York (NY) as a nonresident and South Carolina (SC) as a full year resident. Keep in mind that your resident state requires all worldwide taxable income to be included. See notes below for Other State Tax Credit. 

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

• You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction. Click this link to see the NY 2024 standard deduction based on your filing status.
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits available.
• You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

If you do have to file the NY nonresident tax return you can use the information below to claim a credit on your SC return. 

State Returns - Assumes both states require income tax returns to be filed: Prepare the nonresident state first.

1. Report the sale in the state where the property resides.
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state