1099-NEC Question: Using Different State Addresses When Living in IL But Earning in CO

This is actually a pretty common situation for people with multi-state businesses. The good news is that you don't need to worry about the addresses on the 1099-NECs being different - it won't cause any problems with your tax filing. The address on a 1099-NEC is primarily for mailing/identification purposes, not for determining tax liability. What matters for state tax purposes is where the income was earned and where you live, not what address appears on your forms. You'll still need to file a nonresident return in Colorado for the income earned through the business there, and you'll file a resident return in Illinois where you'll get credit for taxes paid to Colorado to avoid double taxation. The IRS doesn't care about the discrepancy - they're matching the income to your tax ID number (your SSN or your LLC's EIN), not the physical address. So while it might seem messy, it's completely legitimate to have different addresses on different 1099s.

After struggling with a similar multi-state situation (NY/CT for me), I found taxr.ai https://taxr.ai super helpful for sorting out my 1099-NEC issues. I was confused about having multiple addresses and how to properly allocate income between states. Their system analyzed all my tax documents including those conflicting 1099-NECs and gave me clear guidance on how to handle the state filing requirements. It was especially useful because it flagged potential issues before they became problems - like when I had inconsistent address information across different forms. What impressed me was how it handled the complexity of my situation without making me feel stupid for not understanding multi-state tax issues. Definitely worth checking out if you're dealing with income from multiple states.

Just wanted to follow up and say I tried taxr.ai after seeing the recommendation here. I was worried about my WA/CA/OR situation and it was SO much clearer after using it. It confirmed I don't owe any income tax to Washington (since they don't have state income tax), but broke down exactly what I owed to California and Oregon based on my work there. It also pointed out that I had been using my home address inconsistently on some forms, but explained why that wasn't actually a problem with the IRS. I feel much more confident filing this year and not having to stress about getting a notice later because of the address discrepancies!

If you're still confused about this situation and need to talk to someone at the IRS directly, good luck getting through. I spent THREE HOURS on hold trying to get clarification on a multi-state 1099 issue last month. I finally gave up and used Claimyr https://claimyr.com to get through to an actual human at the IRS. They have this system that holds your place in line and calls you when an agent is available. You can check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what others here are saying - the addresses on 1099s don't matter for tax purposes, just for mailing. They also helped me understand exactly how to document which income was earned in which state, which was super helpful for my state returns.

I have to eat crow on this one. After being skeptical about Claimyr, I decided to try it because I was DESPERATE to get clarification on my multi-state 1099-NEC situation before filing. I got a call back in about 40 minutes and was connected to an IRS agent who was actually helpful. The agent confirmed that having different addresses on different 1099-NECs is completely fine and won't trigger any red flags. She explained that I needed to focus on where the work was actually performed for state tax allocation, not what address was listed on the forms. I was also worried about a missing 1099 from one client, and she walked me through exactly how to report that income even without the form. Honestly shocked that I got actual helpful advice from the IRS without wasting an entire day on hold!

One thing to consider with your husband's situation - make sure he's maintaining clear documentation about which income was earned in which state, especially if he ever works from home in Illinois on Colorado-based projects. Some states are getting really aggressive about claiming tax revenue, and Illinois might argue that any work physically performed while in Illinois is Illinois-sourced income, even if the client is in Colorado. I learned this lesson the hard way after working remotely from multiple states. Keeping a log of where you physically are when performing work can save you major headaches if you ever get audited by either state.

Has anyone run into issues with the 1099-NEC form being entirely new-ish? My accountant mentioned it replaced the 1099-MISC Box 7 in 2020 and some companies still mess this up. I had one client send me a MISC instead of a NEC last year and it apparently caused some issues with the state filing.

Just to add a different perspective - I'm an LLC owner who moved mid-year last year, and I asked all my clients to update my address for future 1099s. Some did, some didn't, and honestly it made zero difference in filing my taxes. The key thing is that YOU know where you live and where the business operates - that's what determines your tax liability. The addresses on the forms are mostly for the IRS to mail you stuff if needed. Don't stress about getting them changed unless you're not receiving important mail. Focus instead on keeping good records of which income was earned where for your state filing purposes.

This is really helpful to see everyone's experiences! I'm dealing with a similar situation - I have a single-member LLC in Florida (no state income tax) but I've been doing contract work for clients in New York and New Jersey. Some of my 1099-NECs have my Florida business address, others have my home address, and one client even used an old address from when I briefly worked out of a co-working space. Reading through all these responses, it sounds like I shouldn't worry about the address inconsistencies and should focus on documenting where I physically performed the work. Since I mostly work from home in Florida, I'm assuming most of my income is Florida-sourced, but I did travel to NYC a few times for client meetings where I also did some work on-site. Does anyone know if there's a minimum threshold for New York before they start taxing non-resident income? Or should I just plan to file a non-resident return there to be safe?