Just reviving this thread. On the 1099-NEC there is Box 1, non employee compensation, and then there's Box 7, state income. If I want to file 1099-NECs for several contractors who provide service to my business to both the Fed (IRS) and State (DOR), do I need to fill in Box 7? Or does the state just use Box 1 when determining the compensation paid to the contractor, whether federal or state? According to the expert reply above, even if I'm reporting to the State, I should not report the same non-employee compensation amount in Box 7. Maybe another way to ask the question is, what determine (a) if there should be an amount in Box 7 and (b) what that amount is?
