Question

1099 NEC's and nonresident tax returns

Forum|Forum|2 years ago
March 28, 2024
2 replies
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I am a full time AZ resident. I have W-2 income from NYS as I finished a full time remote position there in early 2023. I am filing a nonresident NYS tax return in which that is included. I also have an AZ-based consulting business for which I received a 1099 NEC (over $15,000) from a (different) NY-based client (all remote consulting services). It constituted under 30% of my overall single member LLC business income. Do I include the 1099 NEC as NYS income on my NYS nonresident tax return, (based on % of overall consulting income), and pay NY taxes on it?

I also have a 1099 NEC from WI for over $17,000. Do I have to file a WI nonresident tax return for that as well or just claim it on my AZ tax return?

Thank you

TurboTax Home & Biz Windows

D

DavidD66

You do not need to include the 1099-NEC income form New York on your non-resident NY tax return, unless you performed the work in New York. Likewise for the 1099-NEC income from WI. If you performed the work in WI, you must file a WI non-resident tax return and include it. If the work was performed in AZ, you don't need to file a WI return.

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J

Janet_21Author

Thank you. That's very helpful. Do I need to complete a Nonresident Business Allocation Schedule for the remote work I did in NY for which I received a W-2?

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DianeW777

No, the Nonresident Business Allocation Schedule is used when work is performed inside and outside of New York (NY). Since you were not physically present in NY when you did the work there is no need for this schedule. This is for your W-2 only.