How to complete state information while filing Form 1099-NEC/1099-MISC?
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While filing Form 1099-MISC or 1099-NEC, you will need to provide the state information if it is applicable to the recipient. State information needs to be reported in Boxes 5 to 7 of Form 1099-NEC/1099-MISC. Although the IRS doesn’t require you to fill in these boxes, your state agency might require a Form 1099-NEC copy. So, it is recommended that you fill in these details if you withheld state taxes.

Note: If there is no state income or state withholding tax for the recipient to report for the year, DO NOT enter any information in Boxes 5 to 7. 

• Box 5 (State tax withheld): Enter the total state tax amount withheld from the contractor’s pay during the year.
• Box 6 (State/Payer’s No.): Select the state from the dropdown and enter the payer’s state no. 
  • Payer’s state no. is a withholding account number that you receive from your state agency to deposit withholding taxes to the state. 
• Box 7 (State income): Enter the state income paid to the contractor. 

To learn the step-by-step instructions on how to e-file Form 1099-NEC through ExpressEfile, click here. For Form 1099-MISC instructions, click here.

With ExpressEfile, you can e-file Form 1099-NEC and 1099-MISC for your recipients easily and securely. It will take only a few minutes to complete the whole filing process.