Easthampton, MA asked in Tax Law for New York

Q: Which state do I pay my state taxes too?

I own a business, My LLC was formed in New York, but I work virtually and move around often. All of my 1099 misc that I received this year, state my old address in NJ. My only physical office is in the state of Massachusetts ( where I do not receive any transactions). I get paid via wire transfers from Partners As I am an independent sales organization. Who do I pay my taxes too?

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1 Lawyer Answer

A: You're going to have to determine in which states you have an income tax nexus.

New York you will have nexus because you're organized there. Next step is to determine the amount of income allocable to New York.

You likely have nexus in Mass. due to a physical place of business that you maintain.

If you did not operate your business in NJ you likely do not have nexus.

Once the business side is figured out you'll have to determine that same for personal taxes.

Income tax laws have not kept up with the mobile lifestyle available to remote workers, especially freelancers.

You're probably best served by a having a conversation with a tax attorney where you discuss in more detail where and how you generate income.

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