I got a 1099-nec from my client, it contains wa state taxes, how do I report to IRS to avoid double taxation?

[ThomasM125]

I assume you mean the Form 1099-NEC reports income in box 1 and wages for the state of Washington in box 5? If so, when you report that information in TurboTax, there will not be an issue with double-reporting of income. The income reported in box 1 will be shown on your federal return and since Washington State does not have an income tax, there is no state tax return to be concerned about.

[Edited 2/19/26 at 12:14 PM PST]

@ANDRE-ORLOV 

[ANDRE-ORLOV]

Yes, this is a problem, boxes 5 and 7 are empty. How do I avoid double taxation? Thanks!

[Vanessa A]

Box 5 and 7 will not affect your federal return, so there would not be double taxation.

  However, Washington State does NOT have an income tax so there should not be any taxes withheld for the state of WA.  If there were, then you would need to contact your client and discuss this.

[ANDRE-ORLOV]

Sorry, I'm new here. We have sales tax in Washington state. Those taxes included in every payment. I send a bill to the client with details on job cost and sales tax separately, then I got a 1099_NEC form, where total was entered in box 1, and all other boxes, including boxes 5 and 7, were blank.

Anyway, I contacted the client asking to update information and send me a new 1099_NEC form. Hope, this is the right way to handle this issue. 

[ThomasM125]

I think you mean the sales tax you collected was included with the Form 1099-NEC you received from your customer. If you can't get him to correct the form, just report the gross amount listed on the Form 1099-NEC, then enter a miscellaneous expense category for sales tax and enter the sales tax as a deduction.