What this line means
The two-letter state abbreviation and the payer’s state tax identification number. This box identifies which state received the withheld tax shown in Box 5. If the payer withheld tax for two states, both states appear in the two available rows on the form.
Does this apply to you?
- You had state tax withheld in Box 5 and need to identify which state received the payment
- You worked in multiple states and had withholding for more than one state on the same 1099-NEC
Easy to overlook
Two-state reporting on a single 1099-NEC The form has room for two states. If you worked in two different states for the same payer, both states’ withholding appears on one 1099-NEC. You need to file a nonresident return in each state and allocate the correct withholding amount to each state’s return. 1 IRS 1099-NEC instructions — Box 6
The state ID number is the payer’s number, not yours This is the payer’s state withholding account number. You do not need to include this on your state return — your state return uses your own Social Security number. The state ID number is useful only if you need to verify the withholding with the state tax authority. 2 General filing pattern — state identification on 1099 forms
Watch out for this
Confusing the payer’s state ID number with your own taxpayer number when filing your state return. Your state return requires your Social Security number or individual taxpayer identification number. The Box 6 number identifies the payer’s account with the state, not your account.
Footnotes
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IRS Instructions for Form 1099-NEC, Box 6. https://www.irs.gov/instructions/i1099nec ↩
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IRS Instructions for Form 1099-NEC. See also IRS Publication 17, Your Federal Income Tax. https://www.irs.gov/pub/irs-pdf/p17.pdf ↩