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    sandpiper3205's Avatar
    sandpiper3205 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 11, 2008, 07:17 AM
    State Income Taxes for 1099 earnings
    I am trying to decide if I should receive my earnings on a W-2 or 1099.
    I reside and work from my home in FL in the medical sales field. IF I receive a 1099 for my earning from a company that is located in CA. Will I be required to pay CA state income tax on these earnings? I have been told I will not have to pay state income taxes if I collect my commissions earning under a dba company name and report on a 1099. Is this correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 11, 2008, 10:43 AM
    Negative on the California income tax.

    What dictates which state taxes you pay is where you work and where you live. Since you neither work nor live in California, California has no legal standing to tax your income. HOW you receive your income (W-2 as an employee or Form 1099 as an independent contractor) is irrelevent to this issue
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Dec 12, 2008, 11:05 PM

    1. If you are not a resident of CA or you do not work in CA, then your income is not subject to CA taxes.
    2. You should get W2 or 1099-misc depends upon if you are a regular employee or an independent contractor.
    3. For info on W2 vs 1099-misc, read Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.
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