topic Re: 1099-NEC in State tax filing

1099-NEC

JR323 — Sun, 02 Mar 2025 17:45:32 GMT

I work remotely for different companies. Some of them hired me as a part time employee so for those I receive a W2 but for the others that I work as an independent contractor for I receive a 1099-NEC. One 1099-NEC has no information listed under 6. state no. But the other 1099-NEC says NY and NY RES under no. 6. Why does it say this? Boxes 5 and 7 are both blank since no taxes were taken out. I live in NJ and performed all work from home. Based on what I read, it sounds like where you completed the work is where you file but I just wanted to confirm since I found it strange that the two forms were different. Thank you!

Re: 1099-NEC

KrisD15 — Sun, 02 Mar 2025 18:11:12 GMT

No, from your description, you would not be required to report New York income, nor file a New York return.

HERE is a link for what New York considers New York Sourced income.

If Box 5 and 7 on Form 1099-NEC are blank, I assume Box 6 simply reports the company state ID and is included on all the forms that company uses.

If TurboTax gives you an error for this (it shouldn't) you can leave box 6 blank as well since the federal return does not need the state ID number.

Re: 1099-NEC

JR323 — Sun, 02 Mar 2025 23:54:57 GMT

Thank you! Yes the company is located in NY so I figured this was this reason they put that as the state but the other 1099-NEC listed no state under no. 6 so I wasn’t sure why they did this. I wasn’t sure if they just put it on everyone’s since that is where the company is located or if we all actually have to file NY taxes because the company is located there.

Re: 1099-NEC

JR323 — Mon, 17 Mar 2025 22:49:57 GMT

I actually went to an accountant to be certain and was told that yes I do need to file a non-resident tax form since they are incorrectly listing the state and residency as NY. The company claims the information is correct even though they know I don’t live in NY. Crazy!

Re: 1099-NEC

KrisD15 — Mon, 17 Mar 2025 22:55:33 GMT

To clarify, was any New York state taxes withheld?

On the 1099-NEC what is in Boxes 5 and 7?

On the W-2 what is in box 16 and 17?

Re: 1099-NEC

JR323 — Tue, 18 Mar 2025 03:27:25 GMT

It is a 1099, not a W2 so no taxes were withheld.

Re: 1099-NEC

DawnC — Tue, 18 Mar 2025 03:35:20 GMT

For the 1099 income >> If there were no taxes withheld, leave all of those boxes blank. Everything will transfer to your resident state return. If you did the work in NJ, that is where you pay tax. You are not an employee for the 1099 income, so the convenience of the employer rule does not apply. If you file a NY nonresident return, TurboTax will ask you what income is allocable to NY. But if you did not do the work in NY and never lived in NY, you don't owe NY taxes. Your client (the payer) filled out that form, so you would need to ask the payer why they included that.