What should I report in the State Income field (Box 7) on 1099-NEC?

Last modified 11/27/2024 11:58:41 AM EST

In Form 1099-NEC, box 7 is to enter the amount of the state income. In most cases, the state income reported for nonemployee compensation (NEC) will be the same as the federal income (Box 1) reported on Form 1099-NEC. However, if the recipient of the NEC has multiple state residencies within the tax year, it may be necessary to report the income separately for each state in which the recipient has resided.

When you e-file Form 1099-NEC in TaxBandits, we will prompt you to file with the list of states based on the Payer/Recipient’s Address you enter. You can add the state details and easily file with states along with your federal filing.