Which state taxes apply!? Military spouse. Home of record is TX. Currently living in VA on husband’s orders. Independent contractor with an LLC doing work for a NY-based company.
I am a military spouse and our home of record is in Texas. We are currently stationed in Virginia. I qualify under the Military Spouse Residency Relief Act (MSRRA). I am an independent contractor and recently set up a single-member TX LLC. I always 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. 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 the employee. Trying to determine: (1) does this employer-based taxation apply to independent contractors? (2) We always file tax returns but don’t need to 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 for fees paid? Thank you in advance for any insight to this murky situation!