What You Need to Know About 1099 State-Level Tax Reporting
For many businesses, filing 1099s with the federal government is only the first step. The next part of the process is to report the income with the appropriate state. But depending on your state, what you need to do varies.
A Closer Look at State-by-State Requirements
Here are the three possibilities:
Your state participates in the Combined Federal/State Filing (CF/SF) program. Most states participate in this program, which is a major convenience for employers. Under this program, the IRS shares data from certain 1099 forms with the appropriate states — automatically. That way, you’re saved the extra step of state filing.
These are the states that participate in the CF/SF program: AL, AZ, CA, CO, CT, DE, DC, GA, HI, ID, IN, KS, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NJ, NM, NC, ND, OH, SC, VA, VT, WI
Your state doesn’t participate in the CF/SF program so you must file directly. If a state isn’t part of the combined program, then it’s your responsibility to file the 1099 directly with that state. It’s two separate returns and two separate processes.
These states require direct filing: IA, KY, NY, OK, OR, PA, RI, UT, WV
Your state doesn’t have a state income tax so you only have to file federal
returns: If you’re an employer filing in one of these states, you’re required to
report 1099 data with the federal government only.
These states are: AK, FL, NV, NH, SD, TN, TX, WA, WY
Let Us Help with All Your 1099 Filings
If you’re looking for the easiest way to file your 1099 forms, look no further than efile4Biz.com. We automatically file Forms 1099-MISC, 1099-DIV, 1099-INT, 1099-B and 1099-R under the Combined Federal/State Filing Program. It’s included with our e-filing service at no extra fee.
Plus, efile4Biz.com offers direct-to-state 1099-MISC filing in Oregon, Oklahoma and Rhode Island. (We also added direct-to-state W-2 Form filing for Georgia, Illinois and Michigan!) New for the upcoming filing season, this service is available for an additional fee of just $1.00. Stay tuned: We plan to include even more states in the future.
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