IRS Form 1099-MISC State Filing Obligations - Tax2efile

Understanding State Filing Obligations for Form 1099-MISC

IRS Tax Form 1099- MISC stands for miscellaneous income and is used to report certain types of compensation such as rent, prizes, awards, etc. A taxpayer would get Form 1099-MISC if you paid them $10 or more in royalties or $600 or more as miscellaneous income during the tax year. This income includes payment for

  • House of office rent
  • Prizes and awards
  • Deferrals on section 409-A
  • Payments to an attorney related to legal services
  • Crop insurance proceeds
  • Medical and healthcare payments
  • Fishing boat proceeds
  • Cash obtained from a notional principal contract to a partnership, individual, or estate.

In addition, taxpayers should also use Form 1099-MISC to report direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. It is mandatory to file 1099-MISC with all the states in the US for yielding miscellaneous income other than the states of Texas, Washington, Wyoming, Alaska, Florida, Illinois, Nevada, New Hampshire, Tennessee, Texas, and New York.

1099- MISC state filing requirements

The due date for filing the returns for Form 1099-MISC is February 28th for those filing on paper and electronic filing; the deadline is March 31st of the calendar year. Taxpayers should give vendors copies of their tax Forms by January 31st. If these dates fall on a weekend, the deadline for filing Form 1099-MISC is the next business day. These due dates are similar for state filing as well.

Taxpayers can easily file their returns electronically with their state, as most of the states indulge in a combined Federal and State filing program. The state filing requirements for different US states are almost similar.

State filing obligations of Form 1099- MISC with Tax2efile

The taxing professionals at Tax2efile will support the e-filing of Form 1099- MISC in all the states that require filing and don’t have a withholding-based filing process. You can choose to e-file the returns with us through our dedicated portal, and we will submit your tax Form to the IRS and all the qualifying States in the US.

We submit all the Forms directly to the states, and an additional state filing fee of USD 1.49 applies to the Forms that are filed directly with the state revenue authorities. For the states that are listed as Combined Federal and State Filing Programs (CFSF), the Forms that you file with us for the IRS will be automatically forwarded to the state. Thus, we eliminate the hurdles of separate reporting for the participating states in the federal taxing program.

However, some states will still require direct filing with the state, even though they take part in the CFSF program. In such cases, Tax2efile will submit the Form directly to these states as well. In cases of State Withholding, the taxpayers are required to file Form 1099-MISC with the state only if they have withheld the state taxes. After you register with us, you can specify the amount withheld in the dashboard by updating the Form and the state tax withheld column. Once taxpayers file Form 1099-MISC in the dashboard, we export the Forms that are eligible for state filing to help taxpayers file with the applicable states directly.

Taxpayers will require State tax registration and withholding IDs only for some states. After obtaining the registration or withholding ID, you can add the states that you will file along with the corresponding IDs on the Settings page of the Tax Forms. It is also required to use appropriate IDs for states that require one while filing Forms from the dashboard.

E-Filing Form 1099-MISC with Tax2efile: A Seamless Process

While choosing to e-file your Form 1099-MISC with Tax2efile, we will submit your tax Form both with the IRS and all the qualifying states. We apply state thresholds while generating the 1099 tax Forms. You have to choose the right Form from the dashboard, determine the states where the accounts are based, fix which states to file with and add the state tax withholding ID, and the authorities at Tax2efile will take over from there.