state tax withheld for nonemployee compensation on form 1099-misc

Forum|Forum|6 years ago
May 20, 2020
1 reply
18 views

Hello,

Where should i put state tax withheld for nonemployee compensation in lacerte? I entered nonemployee compensation in scedule C. Should i record the state tax withheld under 14.1 Misc income-tax withheld?

Thank you!

Lacerte Tax

This topic has been closed for replies.

Best answer by itonewbie

Yes, make your input on Screen 14.1 but not on that main screen. Instead, you need to click on the button for Form 1099-MISC for E-File Returns to fill out all the details.

The income you enter there will not flow anywhere but the SIT will flow to the respective state return. Make sure you do not enter the SIT from that 1099-MISC anywhere else. Otherwise, that same SIT will be duplicated.

itonewbieAnswer

Level 15

Yes, make your input on Screen 14.1 but not on that main screen. Instead, you need to click on the button for Form 1099-MISC for E-File Returns to fill out all the details.

The income you enter there will not flow anywhere but the SIT will flow to the respective state return. Make sure you do not enter the SIT from that 1099-MISC anywhere else. Otherwise, that same SIT will be duplicated.

---------------------------------------------------------------------------------Still an AllStar

M

misskeikoAuthor

Level 4

Okay! I have two questions.

1. Do i only enter the 1099-misc form with state tax withheld? All the other forms only have nonemployee compensation and i already dropped them in schedule C(including the one with state tax withheld).

2. the client is in ca but the state tax withheld on 1099-misc was for minnesota and it says "nonresident entertainer tax" on the top of 1099-misc. is this 1099-misc still taxable under CA? does the client need a MN return?

Thank you!

itonewbie

Level 15

NP, @misskeiko.

1. You should enter all the details. If, however, the only tax withheld is MN NR Entertainer Tax, see #2.

2. I didn't check but don't believe Form ETR is available in Lacerte. If that is correct, there is no reason to enter the MN NR Entertainer Tax withholding on that screen for purposes of e-filing. You may want to do a bit more research but it would appear that FTB may not allow OSTC for MN NR Entertainer Tax because it is not a gross rather than net income tax.

---------------------------------------------------------------------------------Still an AllStar

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