Greetings -

We've got a first time filer here! In the past I had the luxury of someone else doing my taxes, but things are a little more complicated this year - my conditions exceed their experience and comfort level. I want to make sure I understand as much of this as possible. I'm contemplating going to see a professional because I've got so many different changes going on this year, but not sure if some of my questions are very silly/obvious so I thought I'd run them by here first. Many thanks in advance for any advice or suggestions and helping a gal learn more about her taxes.

A little bit about me...
1.) filing status single
2.) live in NJ - work in NYC
3.) multiple jobs in NYC including one 1099MISC with a state of IL
4.) job-related move from Missouri to NJ in January '06
5.) Using HR&Block TaxCut


Issue #1)
Filing Residency:
Not sure how to claim my residencies for my state returns. What are the different tax implications for the type of residency? Story is that I graduated from college in MO (where I've lived all my life) and moved for a job-related moved to NJ (but work in NYC) the second week of January '06. Will definitely be filing as a nonresident in the state of NY, but a little confused as how to file in in MO and NJ. Referenced this page: State Income Tax Returns
But it's a little contradictory. It states that if I lived in NJ for more than 6 months that I should file as a full-year resident in NJ, but what about MO? Part-year? Non-resident? This page goes on to say that if I made a permanent move from one state to another, I'd be considered a part-year resident in each state, but it was only 2 weeks (10 days actually) that I was in MO for '06. I did earn income in excess of $1000 in '06 in the state of MO. Is one situation better than the other? Non-resident in MO and NY, resident in NJ? Or Part year in NJ and MO, non resident in NY? I will also be claiming job-related moving expenses in '06 as well.

Issue #2)
1099-Misc & Self-Employment Tax
When I first moved out here, I took a quick job working weekends for a month to help cover some of my moving expenses. Not sure how to file this - as a "business or self-employment" 1099misc and do a schedule c or under Misc Income as a "sporadic or one time event" - I have no intentions to ever do this job again so is it a sporadic or one time event? Tax Cut says the following: " Business You Own or Self-Employment
You're generally considered to be self-employed or have a business if you carry on a trade or business activity with continuity and regularity and with the primary goal of making money. Hobbies and sporadic activities don't count. " Primary goal was to make money but the activity was not carried on for continuity or regularity.


Issue #3)
State returns:
Based on my w2's and 1099-Misc, I believe I'll be filing 4 different state returns this year. TaxCut only offers spaces for 3 states - do I need to go and file in an office? Additionally, I'm not sure if it makes a difference, but I've actually only performed work in 2 states: MO and NY. My 1099-misc was for work performed in NYC, but the company who paid me for that work is based out of IL so my 1099 Misc lists the state of IL in box 17. The 1099 says in copy two that its to be filed with recipients state income tax return - does this mean it shouldn't be part of my federal tax return? I don't believe that's right as its part of my income for the year, but the 1099misc makes no reference to anything federal like my w2's do.

From one employer - I received 3 w2's - one with an employer state (box 15 on the w2) of NJ, NY, and MO. It was a job in college (state: MO) that I continue to do some very brief part-time work for in NYC so the total amount of income for the entire year of '06 is $1542 - nearly 1100 coming from MO. I've never worked in a NJ-based branch of this company but received a w2 with $322 with the state listed as NJ in box 15. Should I contact the employer to get this corrected or am I missing something?


Many thanks in advance for any help - I'm sure many of these questions or blatanly obvious, but I've been trying to teach myself or research the answers so I'm as prepared as possible before I file or go meet with someone.

Best,
Sarah

Sarah:

For the federal return, you need to file a Form 1040 with Scehdules C and SE to report the Form 1099-MISC income.

For the state return, you file as part-year residents of Missouri and New Jersey, and as a non-resident of NY. You have NO REQUIREMENT to file for Illinois, as you never lived oor worked there. The fact that the company is based there makes no difference.

Email me if you have further questions.