1099-MISC for out-of-state

Forum|Forum|6 years ago
March 10, 2020
1 reply
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I'm self-employed and operate as a sole proprietor. I received several 1099-MISC forms from my clients this year, and even if a client is from out-of-state, Box 17 is always either blank or they enter my home state rather than where they are from.

Do I need to file this 1099-Misc income with those separate states as well (in other words, a separate state return for my home state and the state where the client is located), or just my home state where my business is based? There are times that the work is virtual and done completely from my home, but there are times when I'll cross state lines to work on location with them somewhere else. Thanks!

DavidD66

For the 1099s that you do all the work from your state of residence you do not need to report it to the state from which it was received. If you are performing the work in another state, you need to file with that state and report the income you earned there. Different states have different rules about when you have to report income to that state, so you should check the reporting requirements for the particular states in question. How do I contact my state Department of Revenue?

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ParagonRobAuthor

Thanks @DavidD66 - one more for you:

So if Box 17 has a state other than my own, but I did that work from remote (at home) then I don't have to file that with the state in the box, correct? Because 17 just indicates the home state of the payer, not necessarily where the money was made? Am I understanding correctly? I still only have to file it with my home state?

Also, sorry for taking so long to reply, I never got a notification that you answered this and the whole thing slipped my mind.

JotikaT2

Not necessarily.

Each state has its own set of rules. Some states require you to file a tax return if your income was generated from a source within their state. Others do not.

Please comment with the states where you earned your income. This will allow us to direct your accurately to ensure you file returns in each state required.

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