1099-NEC Box 6 — State / Payer's state number
The two-letter state abbreviation and the payer's state tax identification number — identifies which state Box 5 (state tax withheld) and Box 7 (state income) relate to.
At a glance — Box 6
- Box name
- State / Payer's state number
- Reports to
- Informational — used on your state return to identify the withholding source
- Check against
- Match the state abbreviation against the state where services were performed. The payer's state number should look like the state's format (e.g., CA: 9-digit employer account, NY prefix, TX no state income tax so no state ID).
What Box 6 means
Box 6 has two sub-fields: the two-letter state postal abbreviation (e.g., CA, NY, TX) and the payer's state identification number issued by that state's tax agency. Together they identify which state's return the amounts in Box 5 (state tax withheld) and Box 7 (state income) belong to.
If the payer did business in multiple states and had to allocate payments to you across them, a single 1099-NEC may contain multiple Box 5/6/7 rows — one per state. Each row stands on its own for that state's return.
Box 6 is informational. You do not enter the payer's state ID anywhere on your own state return; it is there so the state tax authority can cross-reference your withholding credit against the payer's filing.
Tax return implications
- Informational only — used to file the correct state return(s). If Box 6 shows CA, you claim Box 5 withholding on California Form 540 (resident) or 540NR (nonresident).
- Multi-state boxes mean multi-state filing obligations — you may need to file nonresident returns in each state listed, plus a resident return in your home state with a credit for taxes paid to other states.
Common pitfalls & things to check
- Mismatch between Box 6 state and the state where you actually performed services — ask the payer which state they withheld for. Filing in the wrong state creates a refund/credit tangle.
- Missing payer state ID but Box 5 is populated — contact the payer; the state will not process your withholding credit without the payer's state identification number on its matching filing.
- Ignoring additional states listed in Box 6 because the amount in Box 5 is small. Even a $50 withholding in another state typically requires a nonresident return to reclaim, unless that state has a minimum-filing threshold that exempts you.
FAQ
What format is the payer's state number?
It varies by state. California uses a 9-digit employer account number. New York prefixes with NY. Most states issue state ID numbers through their Department of Revenue or Department of Labor when the payer registers as a withholding agent in that state.
My 1099-NEC has two states in Box 6 — do I file two state returns?
Likely yes. You would typically file a resident return in your home state, and a nonresident return in each work state listed in Box 6, to claim refund of any Box 5 withholding. Your home state will give you a credit for taxes actually paid to nonresident states (common reciprocity rules apply for NY/NJ/PA/DC).
Why does Box 6 show a state with no income tax?
If Box 6 shows TX, FL, TN, NV, SD, WA, WY, AK, or NH (no wage income tax), it's likely a payer filing error or a leftover default value. Contact the payer for a corrected 1099-NEC — there should be no state withholding or state income for these jurisdictions.
Related 1099-NEC boxes
Box 5 — State tax withheld
State income tax the payer withheld from your nonemployee compensation — rare for residents, more common for nonresident performers, athletes, and contractors working in the payer's state.
Box 1 — Nonemployee compensation
Total payments of $600 or more your payer made to you as an independent contractor during the year — fees, commissions, prizes, and other compensation for services.
Box 2 — Payer made direct sales totaling $5,000 or more
A checkbox indicator (not a dollar amount) that the payer sold you $5,000 or more of consumer products for resale, on buy-sell, deposit-commission, or any other basis.
Box 4 — Federal income tax withheld
Federal income tax the payer withheld from your payments — almost always backup withholding at 24% triggered by a missing or incorrect TIN on your Form W-9, or an IRS 'B notice'.
Freelancer filing a 1099-NEC? Use the 1099 tax calculator to estimate your federal income tax and self-employment tax, the quarterly estimated tax calculator to stay on top of Form 1040-ES payments, and the W-2 vs 1099 comparison if you're deciding between contractor and employee classification.
Sources
1099-NEC box definitions per IRS General Instructions for Forms 1099-MISC and 1099-NEC, IRC §6041A, §6045(f), and §3406 (backup withholding). Year-specific thresholds pulled from the site's central tax-year config (2025 filing year shown).