1099-NEC Box 6 - which state to report the income to when working remotely?

Thanks for this clear explanation! But what if my 1099-NEC has Box 6 filled out with California info, but I live and work in Georgia? I never set foot in California. Does this mean I now have to file a California state return too? I'm getting conflicting advice on this.

If Box 6 shows California but you live and work in Georgia, this could indicate a reporting error by the payer. Generally, you should only need to file a non-resident state return if you physically performed work in that state or have other specific connections there. For remote workers, income is typically taxed in your state of residence. I'd recommend contacting the payer to request a corrected 1099-NEC showing Georgia in Box 6. If they won't correct it, you should still report the income to Georgia, but you may need to file a non-resident California return to claim an exemption and avoid double taxation. Some states have reciprocity agreements that make this easier.

How does that work exactly? Does it just tell you which states you need to file in or does it actually help with the filing process? I'm in a similar situation with remote work for companies in like 4 different states and I'm completely lost.

I'm a bit skeptical... does this actually prevent you from having to file multiple state returns? Because my accountant said if Box 6 lists another state, I have to file there regardless of where I physically did the work. Seems like there's no way around that.

The tool analyzes your specific situation and tells you which states you need to file in based on your documents and circumstances. It doesn't do the actual filing for you, but it gives you a clear breakdown of where you need to file and why. It saved me from unnecessarily filing in states where I didn't need to. For your skepticism, your accountant might be taking the most conservative approach. The reality is that remote work taxation can be complex, and the rules vary by state. What the tool does is analyze the specific state laws that apply to your situation. In my case, I only needed to file in my home state for two of the companies despite what Box 6 said, because those states had specific exemptions for remote workers who never physically entered the state.

Wait, is this legit? How does it actually work? I'm currently dealing with this exact issue and can't get through to anyone at my state tax office.

Sorry but this sounds like a scam. Why would I pay someone to call the IRS for me when I could just keep trying myself? I've never heard of any service that can magically get through their phone system.

It works by using their system that continually dials and navigates the phone tree until it gets a spot in the queue, then calls you to connect. You don't have to sit through the hold music or keep redialing when you get disconnected. It's definitely not a scam - I was super skeptical too, which is why I shared the video link so you can see how it works. I spent almost a week trying to get through myself with no luck. With their service, I got connected in under 25 minutes. You don't have to use it, of course, but when you're dealing with tax deadlines and need answers quickly, the time saved was worth it to me.

Do you have any resources that explain this well? I'm in FL (also no state income tax) working for companies in IL and MA, and they both put their states in Box 6. Not sure if I need to file non-resident returns or not.

The best resource I found was each state's department of revenue website - specifically look for their guidance on "sourcing rules for non-residents" or "telecommuter tax guidelines." For your specific situation in FL working for IL and MA companies, you're likely protected from having to file in those states if you never physically worked there. Massachusetts tried to tax non-resident remote workers during COVID but has since reverted to physical presence rules. Illinois generally follows the physical presence standard too. Keep documentation proving you performed all work in Florida just in case. If the companies incorrectly withhold state taxes, you'll need to file non-resident returns in those states to get refunds.

In TurboTax, after you enter the 1099-NEC information, you should get to a screen about state allocation. Look for an option like "This income was earned in a different state" or something similar. You can override the Box 6 state and allocate the income to your home state. I had to do this last year because my client put their state in Box 6 even though I never worked there. If you can't find the option, try searching "allocate income different state" in TurboTax's help section.