• Glossary
  • Direct-To-State Filing Supported States

Direct-To-State Filing Supported States

Several states demand that filers submit their 1099 papers to them directly in addition to the IRS. The IRS established the Combined Federal/State Filing program so that states could receive the data without having to request it separately. This programme does not include the new 1099-NEC form. As a result, all filers are now required to provide the 1099-NEC forms directly to the states.

Understanding State Income Tax

States differ greatly in their tax laws, rates, procedures, and forms. While there are a variety of filing deadlines, for most people, state tax day falls on April 15—the same day as federal tax day..

A taxpayer must submit tax returns in the state where their income exceeds the filing threshold for that particular year. Several states follow federal standards when it comes to the recognition of income and deductions. Some may even insist that the person file both their federal and state income tax returns at the same time.

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming are the eight states without an income tax as of 2022.

As New Hampshire completes gradually eliminating taxation on unearned income, such as interest and dividends, it will join the list of states that do not tax earned earnings in 2027.

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

The IRS started the Combined Federal/State Filing programme to transmit the 1099 data to the states, preventing individual states from individually requesting that payers submit their 1099s to each state. This Combined Federal/State Filing option is not available in every state. Get all the 1099 information, however, directly from the IRS for the states that do take part in this programme. Other filing criteria can apply to the states that don't take part in the programme.

The Combined Federal/State Filing programme now includes form 1099-NEC, according to the IRS, as of the year 2021. As a result, you are not required to file with the states directly in the majority of them. Yet, even when they take part in the Combined Federal/State Filing scheme, certain states still demand direct to state filing. The filing regulations in your state must be closely followed.

States With 1099-Nec Filing Requirements

Direct-to-State filing is now supported by the following states:

  • For 1099 - MISC: District Of Columbia, Georgia, Illinois, Kansas, Michigan, North Carolina, Oregon, Rhode Island, Virginia, Vermont, and Wisconsin
  • For 1099-NEC: District Of Columbia, Georgia, Kansas, Michigan, North Carolina, Oregon, Virginia, Vermont, and Wisconsin
  • For W-2: District Of Columbia, Georgia, Illinois, Kansas, Michigan, North Carolina, North Dakota, Virginia, and Wisconsin

States That Do Not Require 1099-Nec Filing

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

Conclusion

State income taxes are levied by 42 states and the District of Columbia, however New Hampshire solely levies interest and dividend income and is gradually doing away with that levy.

States differ widely in terms of state tax legislation, rates, processes, and forms.

Although only the state in which you reside may tax all of your income, you are required to file a state tax return for each tax-levying state in which you receive income.

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