State 1099 Filing Requirements for Total Tax-Reporting Compliance

Understand Your 1099 State Reporting Requirements

1. Your state participates in the Combined Federal/State Filing (CF/SF) program.

Under this program, the IRS forwards information from federal forms 1099-NEC, 1099-MISC,1099-B, 1099-DIV, 1099-INT, 1099-K, and 1099-R to participating states several times throughout the year. Even though many states participate in the program, most states require forms to be filed direct to the state when state income taxes are withheld.

These are the states that participate in the CF/SF program: AL, AR, AZ, CA, CO, CT, D.C., DE, GA, HI, ID, IN, KS, LA, ME, MD, MA, MI*, MN, MS, MO, MT, NE, NJ, NM, NC, ND, OH, OK, PA, SC, WI.

NOTE: Participation does not mean that the state may not still require you to file the forms with their agency. Most states require forms that report state withholding to be filed direct to the state.

Please verify the requirements directly with the Department of Revenue for the state in question. Click Here

2. Your state doesn't participate in the CF/SF program at all or participates but still has a requirement for direct filing for the form you need to file.

If a state doesn't participate in the CF/SF program at all or still has a requirement for direct filing for the form you need to file then it’s your responsibility to verify the filing requirements to file the 1099's direct to that state.

These states do not participate in the CF/SF program: FL, IA, IL, KY, OR, PA, RI, TN, UT, VA, WV, VT, DC. All mandated forms will need to be filed direct to the state.

These states although they participate in the CF/SF program but have certain specific to state requirements that filing via the CF/SF does not satisfy: AL, AZ, CT, DE, GA, IN, KS, LA, MA, MI, MN, MS, MT, NC, ND, OH, SC, WI. It is your responsibility to verify the filing requirements with the state as the requirements vary by state.

We support direct to state filing for the forms and states listed on the chart below on our platform.

*We do not file forms via the CF/SF program when we offer direct to the state filing. Michigan is an exception. The 1099-MISC is eligible to be filed with Michigan via the CF/SF program.

Please verify the requirements directly with the Department of Revenue for the state in question. Click Here

3. Your state doesn't have a state income tax or doesn’t require you to file these 1099s to the state.

If you're an employer filing in one of these states, you’re required to file forms 1099-NEC, 1099-MISC, 1099-B, 1099-DIV, 1099-INT or 1099-R to the IRS only.

These states are: AK, FL, NV, NH, NY, SD, TN, TX, WA, WY.

States that require 1099-K to be filed direct to state are: FL and TN.

4. The following states are only supported by Direct to State filings on our platform for the forms indicated, regardless if the state participates in the CF/SF program.

If you do not check the file direct to state box on the form template, your forms WILL NOT be filed to the state.

States 1099-NEC 1099-MISC 1099-INT 1099-R W-2 Forms
Arkansas ‐ ‐ ‐ ‐ ✓
Delaware ✓ ✓ ‐ ✓ ✓
District of Columbia ✓ ✓ ‐ ✓ ✓
Georgia ✓ ✓ ‐ ✓ ✓
Illinois ‐ ✓ ‐ ‐ ✓
Kansas ✓ ✓ ‐ ✓ ✓
Louisiana ✓ ✓ ‐ ✓ ✓
Massachusetts ‐ ‐ ✓ ‐ ‐
Michigan ✓ ✓ ‐ ✓ ✓
Minnesota ✓ ✓ ‐ ✓ ✓
Mississippi ✓ ✓ ‐ ✓ ‐
North Carolina ✓ ✓ ‐ ✓ ✓
North Dakota ✓ ✓ ‐ ✓ ✓
Oregon ✓ ✓ ‐ ✓ ‐
Rhode Island ‐ ✓ ‐ ‐ ‐
South Carolina ‐ ‐ ‐ ‐ ✓
Utah ✓ ✓ ‐ ✓ ‐
Vermont ✓ ✓ ‐ ✓ ✓
Virginia ✓ ✓ ‐ ✓ ✓
Wisconsin ✓ ✓ ‐ ✓ ✓

*We do not file forms via the CF/SF program when we offer direct to the state filing. Michigan is an exception. The 1099-MISC is eligible to be filed with Michigan via the CF/SF program.

Protect Your Business from Hefty Filing Penalties

It pays to mind the tax-filing deadlines, too. Late filing of mandatory 1099s could lead to federal penalties ranging from $60 to $660 per 1099. State penalties vary by state and can be in addition to federal penalties. The amount of the penalty is based on when you file the correct information return, as follows:

  • $60 per 1099, if you file within 30 days of due date; maximum penalty of $232,500
  • $130 per 1099, if you file more than 30 days after the due date but by August 1; maximum penalty of $664,500
  • $330 per 1099, if you file after August 1; maximum penalty of $1,329,000

Penalties for not filing correct information returns apply if you:

  • Don’t file a correct information return by the due date and a reasonable cause isn’t given
  • File on paper if you’re required to file electronically
  • Don’t report a Taxpayer Identification Number (TIN)
  • Report an incorrect TIN
  • Don’t file paper forms that are machine-readable

Penalties for not furnishing correct payee statements apply if you:

  • Don’t provide a correct payee copy by the due date and a reasonable cause isn’t given
  • Don’t show all required information on the statement
  • Provide incorrect information on the statement

Keep in mind that the penalty to file a correct information return is separate from the penalty for not furnishing the correct payee statement. Because of this, you could incur two separate penalties.

*In all cases, the IRS considers you to be a small business if you’ve earned an average of $5 million or less in annual revenue for the past three tax years.