1099-NEC received from different state, not sure if nonresident return is necessary

Forum|Forum|2 years ago
April 3, 2024
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I live in New York, and for part of 2023 I worked as a non-employee for a company in Arkansas. I spent one weekend in Arkansas, but otherwise did all of the work from home in New York.

I received a 1099-NEC:

Box 5 is blank

Box 6 shows NY

Box 7 shows income (over $10,000)

Do I need to report this as out-of-state income, and file as a nonresident in Arkansas? Or can I just report no out-of-state income and file a NY state tax return only.

Thanks for any information.

DavidD66

According to the Arkansas Department of Revenue, you are required to file a non-resident tax return. A nonresident who is paid a salary, lump sum payment, or any other form of payment for work inside and outside of Arkansas is only taxed on the amount of income while physically located inside of Arkansas. For remote workers who perform all of their duties from outside Arkansas, no income would be taxed. If duties performed are a combination of inside and outside of Arkansas, only the portion that reasonably can be allocated to work performed in Arkansas is taxable.

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userpv1957Author

"A nonresident who is paid a salary, lump sum payment, or any other form of payment for work inside and outside of Arkansas is only taxed on the amount of income while physically located inside of Arkansas"

so since I did not work in Arkansas (the work was remote), I am not taxed on this income. But I still need to file a nonresident return?

thanks