topic Re: 1099-NEC in State tax filing

1099-NEC

GCK — Thu, 04 Apr 2024 19:58:56 GMT

I received a 1099-NEC that, has my address incorrect as AZ, where I was a resident 5 years ago. The company I have been contracting with has incorrectly shown the Income (Box 7) associated with AZ 8662303359 (Box 6). Nothing has been withheld (Box 5).

Will Turbo Tax require an AZ tax return based on the 1099-NEC submitted and then I would need to fill out the non-resident forms to file along with the state (MN) where I did earn the money?

Do the states cross-check 1099 income with the IRS?

Is the only recourse, other than filing an additional return for AZ, to request a corrected 1099-NEC from the issuing company?

Re: 1099-NEC

DoninGA — Thu, 04 Apr 2024 18:47:02 GMT

The address on the Form 1099-NEC and the address on your tax return do not have to be the same. Since you did not earn this income in Arizona there is no need to file a AZ state tax return for 2023.

Re: 1099-NEC

GCK — Thu, 04 Apr 2024 19:04:39 GMT

I am more concerned about the entry in Box 6 as AZ and the amount in Box 7. When I enter the 1099-NEC into Turbo Tax as provided it seems to me that AZ is going to be involved. I can't just ignore those entries, or I can I?

Re: 1099-NEC

DoninGA — Thu, 04 Apr 2024 19:15:32 GMT

@GCK wrote:

I am more concerned about the entry in Box 6 as AZ and the amount in Box 7. When I enter the 1099-NEC into Turbo Tax as provided it seems to me that AZ is going to be involved. I can't just ignore those entries, or I can I?

That may cause an issue, where AZ would be contacting you in a future year asking for payment of taxes on the amount posted in box 7. You need to contact the Payer and request a Corrected Form 1099-NEC removing the reference to Arizona in box 6 and 7

Re: 1099-NEC

GCK — Thu, 04 Apr 2024 19:19:50 GMT

Thanks for your response, that was my thinking as well.