NEC Starting with Tax Year 2020. The file you upload needs to be a Comma Delimited file (i.e.Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. On the federal return, it should have been reported on schedule C, then line 3 of Schedule 1, then line 8 of form 1040. Beginning in 2020, then, it follows that oil and gas payments for a working interest will be reported on box 1 of Form 1099-NEC. Click on the link of the desired form to open it. 2.