1099-NEC boxes 5-7

[magicalspirit1]

I am an independent contractor who lives in WA state and works remotely for a company in Kansas City MO.

I do analysis work for an IT company

The company who pays me is a recruiting firm in KS.

Last year...only box 1 on my 1099-NEC had my full nonemployee compensation listed in it.  I believe this was accurate

This year...they added WA in Box 6 and my full compensation amount Box 7 (along with my full compensation being listed in Box 1).

I believe this is wrong. The company I work for thinks they should have been doing this all along.

Are they right????

[RobertB4444 · Accepted solution]

Yes.  You reside and work in Washington state so that is where you earn your money.  If Washington state had a personal income tax then you would have to pay taxes on the money that you earn in the state on that return.  Since Washington does not have a personal income tax the boxes reporting it as income there make no difference.

@magicalspirit1 

[magicalspirit1]

According to what I have read....boxes 5, 6 and 7 are only if state taxes were taken out. 

[MayaD]

That's right. However, since Washington state does not have personal income tax as RobertB4444 mentioned, you can leave boxes 5, 6 and 7 empty. 

[magicalspirit1]

1)  Thank you both 🙂

2) to verify:  it is ok that they put $$$ in Box 7.  It will not impact my taxes because (as we all know) WA has no personal  state income tax

[RobertB4444]

Yes, that is correct.

@magicalspirit1 

[magicalspirit1]

Thank you!!!!!!