1099 NEC reporting

[debracuaz]

1099 NEC reporting asks for "Box 6-State Number" - What is the State Number for Texas

[mesquitebean]

@debracuaz  asked:  "1099 NEC reporting asks for "Box 6-State Number" - What is the State Number for Texas"

By the term "reporting" does that mean you are entering a 1099-NEC for income you received in Texas?

TX does not have a state income tax.  You don't need to mention TX.  Are Boxes 5,6, and 7 blank?

[debracuaz]

There is an amount in Box 7, the same as the total amount of the 1099 NEC since all of the money was earned/paid in Texas

[debracuaz]

I see now that on another 1099 NEC there is nothing in boxes 5, 6, and 7.

I will treat the first 1099 NEC as if it was the same.

Thank you for your quick reply!!

[mesquitebean · Accepted solution]

You're welcome.  Normally in Texas the Payer wouldn't enter anything there in those state tax boxes since there is no state income tax.  The fact that you have a figure in Box 7 is making it request Box 6 info.   As you found, the workaround in TX is not to mention anything for TX in the state boxes 5, 6, and 7.

[SAmd_Prince]

In 1099 NEC form, I have PAYER’S TIN but in turbotax is asks about "Employer ID Number (EIN)". are they the same thing?

My second question is the turbo tax also asks about the adress for the bussines, and in my 1099 NEC form, I have "PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no." shoudl i adress of this payer's name rather than my home adress?

[mesquitebean]

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@ SAmd_Prince wrote:

In 1099 NEC form, I have PAYER’S TIN but in turbotax is asks about "Employer ID Number (EIN)". are they the same thing?

My second question is the turbo tax also asks about the adress for the bussines, and in my 1099 NEC form, I have "PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no." shoudl i adress of this payer's name rather than my home adress?

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A Payer's TIN is often an EIN used interchangeably.  TIN is just generic "Taxpayer Identification Number."  You can use the Payer's TIN in an EIN field.

As for the second question, I'm sorry but I don't know the context of the screen you are on. what exactly it asks for, and what the preceding screen was.  When I enter a test 1099-NEC in Online TurboTax I don't even get asked anything at all about an address--I only get asked about the Payer name and EIN, and the boxes on the 1099-NEC.  I don't know if you are using Online TurboTax or desktop TurboTax, but if you're using desktop TurboTax, I don't know what you encounter while entering a 1099-NEC.

However, are you sure you are entering the 1099-NEC in the correct place?   Hopefully you are not trying to enter it in the W-2 section by mistake.

[SAmd_Prince]

I have "Nonemployee compensation" box in my form 1099-NEC that is my income from this company. I need to enter it somewhere in turbotax but I dont know where (It does not ask). I also want to add that the 2 items in the attached image do not apply to me

[JamesG1]

If you have received an IRS form 1099-NEC, the IRS presumes that the income is subject to self-employment income as well as income tax.

The software wants you to establish a self-employment activity in Schedule C.  Then deposit the IRS form 1099-NEC income into the self-employment activity. 

The question above is one of the questions that the software asks as it establishes a self-employment activity.

To report income and expense under Self-employment income, follow these directions. 

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click on the drop down arrow to the right of Self-employment.
• Click to the right of Self-employment income and expenses.
• At the screen Your 2025 self-employed work summary, click the pencil icon to enter the self-employment activity.
• Answer the questions to establish the self-employment activity and report the income and expense.

[SAmd_Prince]

I am exactly there not in my W-2 section

[SAmd_Prince]

This is what the software generates for me.It does not ask about my compensations

[DawnC]

On that page (you are on the business info page), scroll down and click on Continue or Looks good.   On the next screen, click on Add income from this work.    Then select 1099-NEC and TurboTax will prompt you to enter your form.   @SAmd_Prince 

[mesquitebean]

@ SAmd_Prince 

On the business info screen you provided above, scroll down a little.  Is there another row on that screen?  Your image ended with "Tax Details", but I have another row "Other situations."  If you don't have it yet, it may show up when you answer more questions later.  In any case, low down on that screen (cropped out of your image) is a blue "Looks good" button.

After verifying that everything on that screen looks correct, when I click the blue "Looks good" button, I'm taken to a page for Expenses and Income.    There are buttons on the page--one says "Add expenses for this work" and another one that says "Add income for this work."  I always do the income first.

See @ DawnC's image above.  We were posting this almost simultaneously.  🙂

[DaveF1006]

Yes, the PAYERS TIN and EIN are the same.  When you record the 1099 NEC, put the payer's information rather than your own. The same 1099 NEC is filed with the IRS, so you will want to make sure that both copies have the same matching information.