My 1099-NEC lists state income in box 7, but boxes 5 and 6 are blank. The software requires me to enter something for boxes 5 and/or 6 in order to e-file. What to do?

Forum|Forum|1 year ago
March 31, 2025
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MinhT1

If boxes 5 and 6 are blank, then also leave box 7 blank, You can safely ignore the number in box 7 as there is no state tax withheld in box 5.

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waldrop_jAuthor

But if box 4 (federal tax withheld) is also empty, and I don’t report the income by putting zero in box 7, aren’t I at risk of being penalized for not reporting income that was already shared with the IRS?

Vanessa A

Box 4 does not affect box 5-7.

Which state do you live in? Which state did you earn this money in? Were they the same state? If you lived and worked in the same state when earning this money, whether you leave boxes 5-7 blank or not will not affect anything. When you go through your state return, it will pull this income and then ask if this income should be included.

Box 4 being empty just means, there was no income tax withheld. This is quite common on the 1099-NEC.

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