Hi tax friends, question for you: if I live in NY and have a business that’s based in NY but received a 1099 form from a job I did in New Jersey. Do I have to file taxes in NY and NJ?

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You would get a credit in NY for taxes paid to NJ. Form 112-R.

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Yes

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Thanks everyone!!

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If you performed the services in NJ then yes.

Yes... you need to pay taxes on the amount of income sources in NJ... which is reported on your 1099

Wouldn’t that be double taxation? If I’m being taxed on it in NY and in NJ?

Depends on the filing threshold of NJ. Some states don't require a return until you have a certain amount of gross sales. At that point you would apportion the income to NJ and NY and avoid double tax (kind of).

Make sure you’re considering the UBT rules if applicable as well.

Did you simply sell goods into NJ or did you provide services? If you provided services, I believe NJ is a market state meaning you sources the income from those services to NJ. Either way, you have to fill out a tax return, even if the return is going to show no liabilty.

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