Lion EA Posted January 27, 2021 Report Share Posted January 27, 2021 Forms 1099-NEC. I have only one biz client who uses QB and has ICs. Of course, he hasn't received his December statements, so is unreconciled. And, his bookkeeper can't get me a back-up copy, but that's another story. I may have to drive to borrow their laptop. Company is in CT. At least one IC is NOT in CT. How do I designate the state that the 1099-NEC is supposed to be filed in, in QB? I'm trying to use the 3rd party tax1099.com that flows from QB. I used it for my company, but any and all ICs worked and reside in CT. My client has at least one out-of-state vendor who did NOT come to CT. How do I get that 1099-NEC to NOT send to CT and TO SEND to AL or where ever he is? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted January 27, 2021 Report Share Posted January 27, 2021 I thought that it was acceptable to prepare more than one 1096 (with accompanying 1099's). I have done this in the past when getting the late arriving data from clients and never had any issues. Perhaps you could segregate the recipients into the respective states and process multiple times, one per state. Seems easy enough with using a third party issuer. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 27, 2021 Author Report Share Posted January 27, 2021 That's brilliant, Margaret. Thank you. You're right about running more than one set/more than one 1096. I'm going to do just that by state. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 27, 2021 Report Share Posted January 27, 2021 QB may not allow for a 2nd 1096/1099 set once processed, but an online provider should. For the out-of-state resident, if the income was earned in a state other than CT, you can fill in boxes 5 through 7, and it certainly wouldn't hurt to send it to CT anyway to document that that IC isn't subject to CT income tax or filing if that is the case. That being said, be sure that your client is in compliance with the other state in case the other state would consider that payment has doing business in the other state. Plus, I think Margaret gave the solution while I was slowly typing away! lol 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 27, 2021 Author Report Share Posted January 27, 2021 Great information, Judy! 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 27, 2021 Report Share Posted January 27, 2021 If there is no combined Federal/State filing this year what difference does it make? 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 27, 2021 Author Report Share Posted January 27, 2021 I do have to file the states, though. I was concerned that ALL the 1099-NECs would go to CT, because that's where the company is based. But at least one IC worked in another state all year; I don't want his form to go to CT. I just need to learn how to designate his correct state for filing. Does it start in QB? Have you used tax1099.com that flows from QB? Do I make the designation there? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 27, 2021 Report Share Posted January 27, 2021 9 minutes ago, cbslee said: If there is no combined Federal/State filing this year what difference does it make? To be clear for anyone else reading this that didn't see my other topic, the IRS still has the combined Fed/State filing in place for all the forms that it had in past years but has NOT included the 1099-NEC yet. So for anyone filing other 1099s, for example for INT, DIV or MISC, those would be transmitted to the state(s) if that state participates in the IRS combined filing program. 2 Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 27, 2021 Report Share Posted January 27, 2021 13 minutes ago, Lion EA said: I do have to file the states, though. I was concerned that ALL the 1099-NECs would go to CT, because that's where the company is based. But at least one IC worked in another state all year; I don't want his form to go to CT. I just need to learn how to designate his correct state for filing. Does it start in QB? Have you used tax1099.com that flows from QB? Do I make the designation there? Lion, I just took a quick look at their website and while tax1099.com does offer 1099 state filing, it does not appear to me that it is an integrated option. I may be wrong, but I get the distinct impression that their 1099 state filing is a standalone addon. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 27, 2021 Author Report Share Posted January 27, 2021 I went through the tax1099.com KBs re states. I had figured out from doing my one yesterday that the -NEC does NOT have the combined Fed/State filing, but that tax1099 had default info and options available by state. Finally dug deep enough to learn tax1099's default is to file (if filing fits their default criteria or you've edited) in the resident state (again, you can edit) which is what I need for all the ICs for this client. I now feel more comfortable filing from QB through tax1099 for the first year. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 27, 2021 Author Report Share Posted January 27, 2021 tax1099 has a default for each state. I think CT was e-filing over the threshold, with or without withholding. You can edit their defaults. AL will default to mailing. You are charged separately for the state. I don't think you can file the state only, but you can go back in (prior to actual filing) and add/delete states. tax1099 will file the states separately, but you have one group you export from QB. I did feel like I was going around in circles when I did my own company. (I haven't had an IC before, and QB does the W-2s from within and not exported to a 3rd party.) But I wanted to get through it with my one IC before I worked with this client's company today. I think there are steps where more thorough explanations would've been appreciated, but I did like that I don't have to retype information and that it seems to be updating state rules. And, a lot nicer than having to give paper copies to a client to sign and mail; contactless. It is an addon. But from my viewpoint as the customer, a price addon. I still give it my information in one file and either accept their defaults or edit for tax1099 to file the states. You guys are all great. Thank you for information and advice as I try something new to me. 2 Quote Link to comment Share on other sites More sharing options...
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