Do I need to file a non-resident state tax return for a 1099-MISC?

March 8, 2016 2:57 PM

I did a small amount of work for a company that turns out to be headquartered out of my state of residence. The company is located in California, but I communicated with them remotely and did all of the work in my home state where I reside. I am wondering if I need to fill out a non-resident state tax return for California. The amount of money is small (less than $1000).
posted by rainbowbrite to Work & Money (1 answer total)

Best answer: Your state tax return is based on where you lived and worked, not where your employer resides. So you would fill out a state tax return in your home state - the state listed on your 1099-MISC under Recipient's name and street address (that's you). You don't mention whether you've filed as an independent contractor before. If you haven't, your 1099-MISC income as an independent contractor is considered self-employment earnings. You have to pay federal and state taxes on your self-employment earnings over $400. You can deduct self-employment expenses. Your state return uses the adjusted gross income information from your federal tax return.

Box 16 of your 1099-MISC shows any State tax withheld. So make sure you haven't already had any state taxes deducted from your earnings (probably not, but it's good to double check).
posted by mountainpeak at 3:50 PM on March 8, 2016 [1 favorite]