mrichman333 Posted March 10, 2015 Report Share Posted March 10, 2015 Ok, I have a Sch. C customer that is a photographer. He lives in NJ and worked in NY, PA, and DE in addition to NJ. 5 of his 1099-MISC have no state payer information. (2 are from PA, 1 from VA, 1 from NY and one from NJ) 1 has NJ in box 17 but he says the work was done in NY not NJ 1 has PA in box 17 but he says the work was done in NJ not PA The job for the VA company was done in NY 2 are from the same company with the same EIN, he said he did two jobs and both were in NY. Why they would give him two is beyond me, I was thinking maybe one job was in NJ and one job in NY but he is certain they were both in NY He told me what state the other 5 1099-MISC's were done in and I have no reason to not believe him, he is very meticulous in his recordkeeping. What I don't like is the missing State designation. For example if the VA company sends the 1099-MISC to VA or NJ and Not NY and I allocate it to NY. I see a nightmare down the road as he get letters from states saying they received 1099-MISC Any thoughts Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 10, 2015 Report Share Posted March 10, 2015 Do many states require copies of the 1099-Misc? My state (NC) stopped requiring them years ago. 1 Quote Link to comment Share on other sites More sharing options...
Elrod Posted March 10, 2015 Report Share Posted March 10, 2015 I would just prepare the way he claims....If he gets questioned later...more $ for you. Be sure he signs a statement attesting to it. 1 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 10, 2015 Author Report Share Posted March 10, 2015 I would just prepare the way he claims....If he gets questioned later...more $ for you. Be sure he signs a statement attesting to it. Good idea Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 10, 2015 Author Report Share Posted March 10, 2015 NJ still requires it and NY probably does also. Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 10, 2015 Author Report Share Posted March 10, 2015 Do many states require copies of the 1099-Misc? My state (NC) stopped requiring them years ago. From NJ state website "Form 1099 information returns must be filed with the New Jersey Division of Taxation by all payors of......fiduciaries; employers; and all other payors of interest, rents, salaries, wages, premiums, annuities, compensation, remuneration, or other gains, profits or income, including those who are required to file Federal Form 1099 or any of the Form 1099 designations, when the amount paid or credited is $1,000 or more in a calendar year or if any New Jersey income tax was withheld from the payment. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 10, 2015 Report Share Posted March 10, 2015 (edited) What am I missing here? Is mrichman333 looking to prepare nonresident returns (in addition to the NJ 40) for the 1099's his client received from NY, PA and VA? Edited March 10, 2015 by Yardley CPA Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 10, 2015 Author Report Share Posted March 10, 2015 What am I missing here? Is mrichman333 looking to prepare nonresident returns (in addition to the NJ 40) for the 1099's his client received from NY, PA and VA? Yes, I believe I have to do PA and NY, he did not work in VA. NY is a greedy state, if you work there they want their share Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 10, 2015 Report Share Posted March 10, 2015 If he has a filing requirement in those states because of the amount of SE income earned there, he does have to do a nightmare allocation. Ugh is right. 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted March 11, 2015 Report Share Posted March 11, 2015 Actually, it is pretty straightforward if your client is organized. Which it sounds like he is. First, either ignore the 1099's, because they have no withholding and it doesn't matter. Next, you allocate according to either the net earned in each state, or the gross income in each state, whichever is provable. Then you do the Fed return, and then you just report the net income earned in each state as a NonRes. The 1099's the state gets are just an "alert" to LOOK for a resident or NonRes return. And if the state questions that the 1099 had a 30k gross on it and you reported 16k in that state, you note that you had 14k in expenses to get the job done... Rich 1 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 11, 2015 Report Share Posted March 11, 2015 VA does not require the 1099s be filed with them unless there was income tax withheld. Therefore, they will not question why they did not get a tax return from this man unless they audit the VA company he worked for. And even then, they will question the company first and it may never get kicked up the line to him. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 11, 2015 Report Share Posted March 11, 2015 How much did he make in each state? Some of them will not require filing at all. I guess you would love if this client had expenses for each event so you can pay the states correctly. Let's say that for each event he paid a helper amounts varying from $700 to $1K, it would be nice if he issued a 1099 for each event to the same person so you could correctly report that expense on each state, correct? If that would be nice for you, what's wrong with the company that issued 2 1099s? Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 11, 2015 Author Report Share Posted March 11, 2015 How much did he make in each state? Some of them will not require filing at all. I guess you would love if this client had expenses for each event so you can pay the states correctly. Let's say that for each event he paid a helper amounts varying from $700 to $1K, it would be nice if he issued a 1099 for each event to the same person so you could correctly report that expense on each state, correct? If that would be nice for you, what's wrong with the company that issued 2 1099s? The two 1099-MISC only concerned me because I was thinking they may have done that because two states were involved. What I am trying to avoid is the customer getting notices from states saying the received 1099-MISC and he did not file a return. Quote Link to comment Share on other sites More sharing options...
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