1099NEC from a non-resident state (NC)

Forum|Forum|1 year ago
March 23, 2025
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Hi, guys,

I live and work in PA. And get a $10k (1099NEC) from a NC based origanization.

I have never been to NC to perform the work for this $10k.

Under this scenario, should I file a tax return for NC?

Thanks,

Neil

Mike9241

No. Many companies have branches in multiple states. Generally, it's the state where you performed the service that gets to tax you. if it's different than your resident sate you pay resident state income taxes on the income and then take a credit for taxes paid to the non-resident state. However, certain states have laws regarding remote work and it may tax you on the remote work even if you are never physically present.

are there state amounts in boxes 5,6 and 7. that should tell you what states to file in. if blank just your resident state.

neilfieldAuthor

Thanks so much for your information.

There is only one branch in NC for this organization. As you mentioned, I checked my 1099NEC, 5 and 7 are blank, while 6 is filled with NC and payer's state number.

So with this condition, I have to file a tax return for NC for this $10k, right?

If I have to file a tax return for NC, it seems the standard deduction for NC is $14600. My $10k from NC is less than $14600, therefore I don't owe tax to NC, right?

Thanks a lot.

Neil