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magicalspirit1
January 31, 2025
Solved

1099-NEC boxes 5-7

  • January 31, 2025
  • 1 reply
  • 0 views

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????

Best answer by RobertB4444

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 

1 reply

R
RobertB4444Answer
January 31, 2025

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 

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    M
    magicalspirit1Author
    January 31, 2025

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

    M
    MayaD
    January 31, 2025

    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. 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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