Question

1099 employee

Forum|Forum|2 years ago
August 30, 2023
2 replies
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I am a 1099 employee and live in a different state than my employer. In doing taxes this past year it said that I had to pay taxes for both my state I reside in as well as the state my job is in but the state I reside in will reimburse me so I don't have to pay double the taxes but I never got reimbursed...what do I do differently for the tax season coming up to make sure I get reimbursed?

Ask the Experts - Self-Employed - Aug 2023

JBedford

Hi, @Justhero , thanks for the question!

So first, I want to be clear on our terms, to avoid confusion. If your income is reported on a 1099, then you are not an employee. You are a self-employed individual. Therefore, the company is not your employer, but rather your customer, if you will.

Based on that fact, you should only be taxed in states where you actually performed work. This work you did for the company, did you perform that in their state, or yours?

As to the Credit for Taxes Paid to Other States, you have to claim that on your resident state return in order to receive it. TurboTax has a section for that. If you did not file that way, then you should amend your return. This article shows how. In your case, you would only have to amend the state return.

Hope this helps, please let me know if not!

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J

JustheroAuthor

That's correct regarding them being my customer. The work was done remotely in the state I reside in. Also, is it a requirement to make quarterly payments or are you able to have that tax amount deducted from your return?

JBedford

Then you should not have to file in the other state, so if you did, then that's the amendment you should make. Quarterly payments are likely needed, as the IRS operates on a "pay as you go" model.

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X

xmasbaby0

If you are going to get a 1099NEC you are not an employee. You are a self-employed independent contractor.

When you perform work in one state and live in a different state, you need to file a non-resident state tax return first and then a return for the state that you live in.

https://ttlc.intuit.com/questions/2895920-why-would-i-have-to-file-a-nonresident-state-return

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**