[sm4436]

I'm New Jersey resident entire 2006 and has NJ income. Married filing jointly. Spouse (NJ-resident entire 2006) has following income from New York and Colorado states. Work was performed over the internet from NJ in all three cases.

1) $3500 on 1099-MISC (box 7: non-employee compensation) from NY. No tax withheld.
2) $1800 on 1099-MISC (box 7: non-employee compensation) from CO. No tax withheld.
3) $1000 income on W2 from CO. State tax withheld for NJ as per box 15 of W2.

Questions about multiple state tax return filing:

1) Do we need to file NY state tax return for NY 1099-MISC?
2) Do we need to file CO state tax return for CO 1099-MISC?
3) Do we need to file CO state tax return for CO-W2 even they withheld NJ state tax?

Appreciate any help. Thanks in advance.

[AtlantaTaxExpert]

In my opinion, since ALL the work was physically done within NJ state borders and NONE was done in either NY or CO state borders, the ONLY taxes due are to NJ. Neither NY nor CO has any claim on your income since NO WORK was done in either state.

The fact that the companies who paid you were based in NY and CO is irrelevant.

[sm4436]

I really appreciate your help. Thank you very much.

[AtlantaTaxExpert]

Glad to help!