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January 26, 2024
Question

1099NEC

  • January 26, 2024
  • 1 reply
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Working with an indep contractor (I am familiar with the rules regarding the form) but they reside in a state that requires filing of the NEC copy.   Do I report income earned where our company is based or in their resident state?  They spent 90% of their time doing work for us via zoom in their own state and 10% traveling to a client location in yet another state.    Questioning what to list in box 6 of the NEC

1 reply

rjs
Employee
January 26, 2024

Boxes 5, 6, and 7 of Form 1099-NEC are only used if you withheld state income tax from the payments to the contractor. If you did not withhold state income tax, leave those boxes blank. Form 1099-NEC does not indicate where the income was earned.

 

January 26, 2024

Thank you for the quick response