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New Member
posted Mar 25, 2024 1:20:59 PM

Stuck in a state return loop due to 1099-NEC consulting out of state

I (SC Resident) did $900 worth of consulting for a company in another state (NC). They filed a 1099-NEC. When I entered this form into TurboTax it sticks me in a loop where it tries to force me to pay for and download the NC state software. This should not only be below the minimum amount of income, but the work itself was performed in my resident state, not in NC. I can find no way to address this. How do I get TurboTax to stop trying to force me to pay another $45 for a state return I shouldn't have to file?

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1 Replies
Expert Alumni
Mar 26, 2024 10:30:47 AM

Normally, self employment work is taxed where the work is done.  In your case your work was done in South Carolina, and you should not have to pay taxes to North Caroline. You have to make sure that your business and your 1099-NEC are marked for the state where you reside.  To go back to your 1099-NEC follow the steps below:

  1. Sign in and open or continue your return.
  2. Search for 1099-NEC and select the Jump to link.