Hi

So I was a student in NJ till last June (I'm still on F-1 from India), currently doing OPT in IL. I received a fellowship award to come work in IL for 11 months--the income was reported on 1099-MISC box 3. I'm filing as an independent contractor for my federal return. The non-profit that gave me the income has their office in NJ, but I have not worked there at all, as the money was given entirely for work done in Chicago.

My question is-- for my state returns, is this income NJ source income? i.e do i need to file a part-year non-resident return there? and then, claim a credit for taxes paid there in my IL part-yr resident return? Or can I just file the IL return and pay the taxes here? ( I will anyway be filing a part-yr NJ resident form as I received some income in the first half of the year)

Thanks!

If you earned the income in Chicago, then that is Illinois-based income and you owe taxes ONLY to Illinois. Do not claim the 1099 income on a NJ return.

great! i filed yesterday afternoon after spending the morning searching thru websites, and deciding that shld be the right answer-- so im glad i dont need to go back and re-do mistakes!! =)

Thanks for the help!

Glad to help!