Direct to State Filing for 1099-NEC

What is State Filing?

Some states require the filers to file their 1099 forms directly with the states, in addition to filing with the IRS. The IRS created the Combined Federal /State Filing program to send the information to states, and they do not have to ask for it separately. The new 1099-NEC form is not included in this program. As a result, all filers now need to submit the 1099-NEC forms with the states directly.

Please note that the state filing is not a part of our service. You need to pay attention and follow your state's filing guidelines.

What is Combined Federal/State Filing (CF/SF)?

To help individual states from separately asking payers to submit their 1099s to each state, the IRS launched the Combined Federal/State Filing program to send the 1099 information to the states. Not all states participate in this Combined Federal/State Filing program. But for the states that do participate in this program, get all the 1099 information directly from IRS. The states that do not participate in the program may have different filing requirements.

When the IRS launched the new 1099-NEC form for the year 2020, it did not include this form in the Combined Federal/State Filing program. As a result, all the states are struggling to come up with their requirements for 1099-NEC.

State Filing Requirements

These state-specific requirements are still emerging, and it could be quite a challenge for anyone to track all these new requirements. At eFile360, we are attempting to collect and summarize state-specific 1099-NEC filing requirements for our users.

We are looking at our ability to file with some of these states (that allow us to bulk file) directly. When we can't file directly, we plan to provide download files that users can use to file with their states themselves. We will provide more updates soon.

We plan to update this document as new state requirements emerge, and we also intend to update our list of states where we can file directly.

States with 1099-NEC filing requirements

Alabama

Requirements for 1099-NEC are not published yet. The state requires 1099 when a payment of $1,500 or more is paid that is taxable in the state. The Filer can file on paper if no state taxes are withheld. If state taxes are withheld, forms must accompany the Annual reconciliation Form A-3. If state taxes were withheld and there are more than 25 forms then the forms need to be filed electronically. It is expected that the state would have requirements for 1099-NEC. Due date is March 15.

Arizona

Requires 1099-NEC, only if state withholding is reported - However, form 1099-NEC is not listed in the list of forms available for electronic filing. The Filer must submit these forms to the state department on paper.

Arkansas

Requires 1099-NEC – when reporting payment of $2,500 or if there is Arkansas withholding. Requires same format as Publication 1220. However, the instructions to electronically submit 1099 forms are not available. The process is only for W-2 forms. Due Date January 31.

California

Requires 1099-NEC – when reporting payment of $600 or more to non-employees. Requires same format as Publication 1220. Due Date is February 28 when filing on paper or March 31 for electronic filing.

Colorado

Colorado states will begin accepting 1099-NEC on January 15. The 1099-NEC information can be submitted to the Colorado Department of Revenue via email. Colorado has yet to provide file specifications. Colorado has not yet confirmed the filing due date or when the state filing is required. Colorado’s normal filing due date is January 31.

Connecticut

Requires 1099-NEC – filers can file on paper if less than 25 forms but must file electronically if for 25 or more forms. State also requires an Annual Summary together with the electronic file. Due date is February 15.

Delaware

Requires 1099-NEC – Direct filing is required when the form is issued to a resident or non-resident who performed services in the state. 25 or more forms need to be filed electronically. Requires same format as Publication 1220. Due Date January 31.

D.C.

Requires 1099-NEC – direct filing is required if $600 or more paid to DC residents. 25 or more forms need to be filed electronically. Requires same format as Publication 1220. Due Date January 31.

Georgia

Requires 1099-NEC – only if GA state withholding is reported. Georgia has not released the specifications for 1099 filing, but previously their requirements were close to federal 1220 requirements. GA state requires annual reconciliation. Forms must be filed with the GA department of Revenue by January 31.

Hawaii

Requires 1099-NEC – if the business is located in the state or makes a payment to residents of the state. The form must be filed on paper with Annual Summary and Transmittal of Hawaii Information Returns (Form N-196). Updated form N-196 will be released later in January 2024.

Idaho

Requires 1099-NEC – only if state withholding is reported. Filing specifications are similar to the federal 1220 but the state also requires Reconciliation Form 967. Due date February 28.

Indiana

Requires 1099-NEC – only if state withholding is reported. Filing specifications are similar to the federal 1220. Due date January 31.

Iowa

Requires 1099-NEC – only if state withholding is reported. Filing specifications are similar to the federal 1220. Due date February 15.

Kansas

Requires 1099-NEC – if 1099 is required to be filed federally, it must be filed with the state. Filing specifications are similar to the federal 1220, or a comma separated CSV file can be used. Due date February 15.

Kentucky

Requires 1099-NEC – only if state withholding is reported. Filing specifications are similar to the federal 1220. But the file must be sent on a CD. Due date January 31.

Louisiana

Requirements for 1099-NEC are not published yet. The state requires 1099-MISC, so it is expected to have similar requirements for 1099-NEC.

Maine

Requirements for 1099-NEC are not published yet. The state requires 1099-MISC when state withholding is reported, so it is expected to have similar requirements for 1099-NEC.

Maryland

Requires 1099-NEC – only if state withholding is reported. Filing specifications are similar to the federal 1220. Due date January 31.

Massachusetts

Requires 1099-NEC. Filing specifications are similar to the federal 1220. But the file must be sent on a CD. Due date January 31.

Michigan

Requirements for 1099-NEC are not published yet. The state requires 1099-MISC, so it is expected to have similar requirements for 1099-NEC.

Minnesota

Requirements for 1099-NEC are not published yet. The state requires 1099-MISC, so it is expected to have similar requirements for 1099-NEC.

Mississippi

Requires 1099-NEC- when reporting a payment of over $600 or more. Filing specifications are similar to the federal 1220. Due date March 1.

Missouri

Requires 1099-NEC- when reporting a payment of over $1,200 or more. Filing specifications are similar to the federal 1220. Due date March 1.

Montana

Requires 1099-NEC. If there is state withholding, the state also requires a Withholding Reconciliation form (form MW-3). Filing specifications are similar to the federal 1220. Due date January 31.

Nebraska

Requires 1099-NEC only if state withholding is reported. 1099-NEC reporting specifications have not been released yet. The Nebraska Reconciliation of Income Tax Withheld, Form W-3N is required. Due date January 31.

New Jersey

Requires 1099-NEC – when reporting a payment of $1000 or more or if there is state withholding. If there is state withholding, the state also requires a Withholding Reconciliation form (form NJ-W-3). Filing specifications are similar to the federal 1220. Due date February 15.

New Mexico

Requirements for 1099-NEC are not published yet. The state requires 1099-MISC, only if the payments drive from the oil and gas production in the state. It is expected to have similar requirements for 1099-NEC.

North Carolina

Requires 1099-NEC –The state requires form NC-3 to report tax withheld together with a paper or electronic copy of 1099. Due date January 31.

North Dakota

Requires 1099-NEC - Must be filed electronically if required to file electronically with the IRS or if there are more than 10 forms. When filing electronically, Form 307 Transmittal of Wage and Tax Statement is not required. Due date January 31.

Ohio

Requires 1099-NEC only if state withholding is reported. 1099-NEC cannot be uploaded using Ohio Business Gateway. The state will accept paper copies. No specific due date is provided. But for 1099-R the due date is Feb 1.

Oklahoma

Requires 1099-NEC if payment greater than $750 is made to a resident. No specific due date is provided. But for 1099-R the due date is Feb 1.

Oregon

Requires 1099-NEC if payment is made to a resident. Oregon Annual Reconciliation (Form OR-WR) is required. Due date is January 31.

Pennsylvania

Requires 1099-NEC if payment is made to a resident. REV-1667 Annual Withholding Reconciliation Statement is required. Due date is January 31.

Rhode Island

Requirements for 1099-NEC are not published yet. The state requires 1099 if there is a state withholding. State only accepts paper filing for 1099 forms.

South Carolina

Requires 1099-NEC if state withholding is reported. State only accepts 1099 through CD-ROM media. If reporting less than 250 forms, state will accept paper copies. Due date is January 31.

Utah

Requirements for 1099-NEC are not published yet. The state requires 1099 if there is a state withholding. State requires annual reconciliation form together with 1099 forms. Due date is January 31.

Vermont

Requires 1099-NEC if state withholding is reported or if the form is issued to a non-resident for the services performed in the state. Due date is January 31.

Virginia

Requires 1099-NEC if state withholding is reported. Virginia state has not released the exact requirements for 1099-NEC. But based on 1099 guidelines, the form would be required to be filed with the state if there is state withholding. Due date is January 31.

West Virginia

Requires 1099-NEC if state withholding is reported. Forms 1099 reported to West Virginia require the inclusion of reconciliation amount in record C. Due date is January 31.

Wisconsin

Requires 1099-NEC when a form is issued to a resident of the state or to a non-resident for services performed in the state. Forms 1099 reported to the state must accompany the annual reconciliation form (Form WT-7). Due date is January 31.

States that do not require 1099-NEC filing?

Alaska, Florida, Illinois, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, Wyoming.