State taxes--source of income/residency
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!