Do I Have to Pay NY State Taxes on Self-Employed Consulting Income? I am a Texas Resident, living in Virginia under spouse’s military orders, with NY Source Income.
I am a military spouse we are currently stationed in Virginia. I qualify under the Military Spouse Residency Relief Act (MSRRA) and Texas is our home of record. I am an independent contractor and recently set up a single-member TX LLC. I provide services exclusively remotely from home and have recently contracted with a NY-based firm. I will not ever physically be or work in NY to provide the consulting services, and the services are mainly provided to a foreign branch. I have no VA clients and do not offer any services to VA clients.
I know that NY state imposes income taxes based on the location of the employer, not where the employee performs the work as in most states. Trying to determine: (1) does this employer-based taxation apply to independent contractors/LLCs? (2) We don’t need to file tax returns in VA as a result of the MSRRA application. Will I need to file state returns in NY now since I have a NY client (and therefore NY revenue), or am I good to just deal with TX because both VA and NY have recognized the MSRRA? (3) Should the NY client be providing me with a 1099-MISC or 1099-NEC for fees paid?
