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  • 1.  1099-NEC Box 5 ( State Withheld ), Box 7 ( State Income ) - Do These Need To Be Filed With All States?

    Posted 01-28-2021 11:07
    I have a customer who is asking whether the 1099-NEC needs to be sent to each state that they have a 1099-NEC payee. I don't think so unless there was withholding ( which is rare ). 

    In one case the customer said they were prompted for a NC ( North Carolina ) tax ID number. By the time I looked at their system they had added and removed several tax ID numbers so it was difficult to know exactly what error message they received.

    Has anyone else fielded calls from customers about whether these 1099-NEC need to be filed in states other than where the customer is located?

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 2.  RE: 1099-NEC Box 5 ( State Withheld ), Box 7 ( State Income ) - Do These Need To Be Filed With All States?

    Posted 01-28-2021 11:29
    They can't file with the other states unless they're registered with those other states.  When in the grid, I change all the filing states to be WI since technically that payee should be reporting income in WI.  Doing that, it doesn't bring any other states up in the window where you select where you want to file.

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    Mary Jo Krueger
    Senior Software Consultant
    CLA (CliftonLarsonAllen LLP)
    Appleton WI
    920-996-1176
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  • 3.  RE: 1099-NEC Box 5 ( State Withheld ), Box 7 ( State Income ) - Do These Need To Be Filed With All States?

    Posted 01-28-2021 12:08
    Just assisted client with this today.  Like @Mary Jo Krueger - I warn them that I am not a CPA then tell them they could change it to their home state.  Aatrix also displays a "yellow" warning about the missing state number but allows you to proceed without correcting the missing number or changing the state code.
    ​

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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    Original Message


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