ejdtaxman
Level 7

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? 

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