1099-NEC not valid for NY e-file

Forum|Forum|5 years ago
April 17, 2021
2 replies
11 views

I have a client with a 1099-NEC. When I go to the NY return it tells me not valid for NY e-filing because NY does not accept the form for the 2020 tax year.

I have other clients with one or more 1099-NEC, who are e-filing NY, for which the error does not appear. It only appears for this particular client. I am befuddled.

I should add that this client has the 1099 marked as other income, he does not use a schedule C. And the 1099 has NY withholding.

I noticed when I removed the withholding, the error disappeared. It is not logical that NY would care about this, but it is also not logical that would not accept an e-filed return for using one of the most commonly issued forms, when they require practitioners to e-file all returns.

I can't find anything online about this, but is there a way to re-characterize the 1099 as MISC instead of NEC and still give him credit for the withholding?

ProSeries Professional

This topic has been closed for replies.

Best answer by Accountant-Man

You don't have to input the NEC, just find a way to enter the income and withholding elsewhere.

Then you also have to answer Lisa's question.

Just-Lisa-Now-

Intuit Community Champion

why did they get a 1099NEC if theyre not self employed with a Sch C?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

E

ejdtaxmanAuthor

Level 6

Not sure, but I have clients who are not self employed that have gotten these before. Was never an issue before because the 1099NEC didnt exist. I assume its just a processing error.

I decided to just re-enter it as a 1099 MISC with withholding and it's fine.

Just-Lisa-Now-

Intuit Community Champion

If they were paid for providing a service to someone (they did work) then IRS considers them self employed and will be expecting a Sch C to appear in the return and self employment taxes to be paid....so you may want to be sure youve got your ducks in a row and can explain how/why this income isnt self employment income when IRS sends the letter in the next year or two.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Accountant-ManAnswer

Level 13

You don't have to input the NEC, just find a way to enter the income and withholding elsewhere.

Then you also have to answer Lisa's question.

** I'm still a champion... of the world! Even without The Lounge.

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