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February 8, 2025
Question

1099-NEC from Maryland and Pennsylvania, but I live in New York. Do I need to file a MD or PA return?

  • February 8, 2025
  • 1 reply
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I live and work full time in New York, and receive a W-2 here. I also completed two freelance projects for a Maryland-based company. For both projects, like 95% of the work was done from home in NY, but I did travel on-site for both projects, once to PA for project #1 and once to MD for project #2. The company sent me a 1099-NEC for both projects. Boxes 6 and 7 are blank on both Forms 1099-NEC. Do I need to file state returns in MD and PA? If so, how do I determine how much of my income to allocate to NY versus MD/PA? Is this just a personal judgment call? I.e., if I were paid $10,000 and I think only 5% of the work was in MD, I would only assign $500 income to MD? 

 

 

    1 reply

    February 8, 2025

    You would not be required to file a Maryland income tax return- the threshold amount can be found at Filing Information for Individual Income Tax.

    You would be required to file a Pennsylvania return because their filing threshold is $33.  See Brief Overview and Filing Requirements.

     

    Pe3nnsylvania requires business income to be allocated using a three-factor (property, sales and payroll) formula. See PA Schedule NRH.


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