Form 1099-NEC: State Filing Requirements
Form 1099-NEC is a new development for the tax year 2020, and it has caused stress and confusion for tax professionals and business owners alike. In a year full of upheaval, this has been one more change to adapt to.
Since Form 1099-NEC is not included in the Combined Federal and State Filing program, or CS/SF, this has created confusion with state filing. Here at TaxBandits, our team is getting many questions as year-end filing ramps up.
To help answer these questions, we are bringing you a quick guide to help you determine whether or not you need to file Form 1099-NEC with your state agency.
Background Information on Form 1099-NEC
Before we get started with state filing requirements, let’s talk about the purpose of Form 1099-NEC. This form was originally created in the 1980s, but it has been reactivated for Tax Year 2020 and beyond. Its sole purpose is to report non-employee compensation. This form will replace Form 1099-MISC, box 7, where this information has been reported in the past.
If you have employed an independent contractor and paid them $600 or more, you are required by the IRS to file a Form 1099-NEC for them and furnish them with a copy.
Some states require the filing of 1099-NEC, while others do not, here is what you need to know.
Which states don’t require the filing of Form 1099-NEC?
The following states do not require you to file Form 1099-NEC:
- Alaska
- Florida
- Illinois
- Nevada
- New Hampshire
- New York
- Ohio
- South Dakota
- Tennessee
- Texas
- Wyoming
- Washington
Which states require the filing of Form 1099-NEC?
Listed below are the filing requirements for all states based on the information provided by their Departments of Revenue. For more information on each, simply follow the link to their state page.
The deadline for filing Form 1099-NEC is January 31, 2021, unless otherwise noted. Please note that since the 31st falls over the weekend, these forms are due to the IRS and state on February 1, 2021.
The State of Arizona requires Form 1099-NEC to be filed with the Arizona Department of Revenue if there was state withholding.
The State of Arkansas requires Form 1099-NEC to be filed with the Arkansas Department of Finance and Administration if the payments exceeded $2500 or there was state withholding.
The State of California requires businesses to file Form 1099-NEC with the California Franchise Tax Board.
The deadline for filing with California is March 31, 2021.
The State of Colorado requires the filing of Form 1099-NEC with the Colorado Department of Revenue if there was state withholding.
The State of Connecticut requires the filing of Form 1099-NEC with the Connecticut Department of Revenue if the payments relate to service performed partially or completely within the state, even if there was no state income tax withholding.
You must file Form 1099-NEC with the Delaware Department of Finance if there was state withholding.
Form 1099-NEC should be filed with the District of Columbia Office of Tax and Revenue if there was state withholding.
File Form 1099-NEC with the Georgia Department of Revenue if there was state withholding.
You must file Form 1099-NEC with the Idaho State Tax Commission if there was a state withholding.
The deadline to file with February 28, 2021.
You must file Form 1099-NEC with the Idaho State Tax Commission if there was a state withholding.
File Form 1099-NEC with the Iowa Department of Revenue and Finance if there was a state withholding. If there is no state withholding, be sure to have the form available for the state upon their request.
The deadline to file is February 15, 2021.
File Form 1099-NEC with the Kansas Department of Revenue.
File the Form 1099-NEC with the Kentucky Revenue Cabinet if there was state withholding.
File the Form 1099-NEC with the Maine Revenue Services if there was state withholding.
File the Form 1099-NEC with the Maryland Comptroller if there was state withholding.
File the Form 1099-NEC with the Massachusetts Department of Revenue if there was state withholding.
You must file Form 1099-NEC with the Michigan Department of Treasury if there was a state withholding.
You must file Form 1099-NEC with the Minnesota Department of Revenue if there was a state withholding.
File the Form 1099-NEC with the Mississippi Department of Revenue. The deadline to file with Mississippi is February 28, 2021.
You must file Form 1099-NEC with the Missouri Department of Revenue if there was a state withholding. The deadline to file with Missouri is February 28, 2021.
You must file Form 1099-NEC with the Montana Department of Revenue if there was a state withholding.
You must file Form 1099-NEC with the Nebraska Department of Revenue if there was a state withholding.
You must file Form 1099-NEC with the New Jersey Department of Treasury if there was a state withholding. The deadline to file with New Jersey is February 15, 2021.
File Form 1099-NEC with the New Mexico Taxation and Revenue Department. The deadline to file with New Mexico is February 15, 2021.
You must file Form 1099-NEC with the North Carolina Department of Revenue if there was a state withholding.
File Form 1099-NEC with the North Dakota Tax Commissioner. The deadline to file with North Dakota is March 1, 2021.
File Form 1099-NEC with the Oklahoma Tax Commission.
File Form 1099-NEC with the Oregon Department of Revenue.
File Form 1099-NEC with the Pennsylvania Department of Revenue if there was a state withholding.
File Form 1099-NEC with the South Carolina Department of Revenue if there was a state withholding.
File Form 1099-NEC with the Utah Tax Commission.
File Form 1099-NEC with the Vermont Department of Taxes if there was a state withholding.
File Form 1099-NEC with the West Virginia Department of Tax and Revenue if there was a state withholding.
File Form 1099-NEC with the Wisconsin Department of Revenue if there was a state withholding.
Did you know that TaxBandits supports filing your 1099-NEC with the IRS and your state?
When it comes to your recipient copies, we offer both postal mailing and online access using the TaxBandits Secure Online Access Portal.
The deadline to file is less than a week away! Get started now with TaxBandits!
