New 1099 NEC state filing: Did you withhold any State or Federal tax under backup withholding rules? If yes, then you’re required to file 1099 NEC with the state. Before filing 1099 NEC with the state, you’re required to check whether the state is involved in combined Federal/ State filing program. If you’re State requires to file 1099 NEC Tax Form, then you can furnish the Copy 1 of the Form to the State Tax Department.
Doesn’t know whether your State require to file 1099 NEC or not? Then we are here to provide service on filing 1099 NEC with the state. We’ll let you know about state filing requirements and when to file 1099 NEC with the state.
What do you mean by new 1099 NEC State filing?
IRS forwards relevant forms only if they are filed electronically through combined Federal/ State filing program. Due to the new 1099 NEC Form, only few States are involved in combined State/ federal filing program.
If you withheld any State/Federal taxes under backup withholding rules, you’re required to report the 1099 NEC Form with State. To report 1099 NEC Form with the State, you’re required to gather information of the State. This includes, State tax Identification number, name of the state and state tax amount.
Does 1099 NEC involved in CF/SF Program?
Payers who file electronically in one or multiple states participate in combined State/ Federal filing program. The information reported to states is same as information reported to the IRS. With the help of combined state / federal filing, the IRS forwards the information to the state by saving your time and the state tax agency time.
From past few years, non-employee compensations are reported through 1099 MISC Box 7. From 2021 Tax year, Form 1099 Online NEC replaced 1099 MISC Box 7 for reporting non-employee compensation. As the 1099 NEC is newly redesigned in 2021 tax year, the IRS does not include it in its combined State and Federal filing program. Only few states required to file 1099 NEC Tax Form.
States required to file 1099 NEC
As we know, 1099 NEC Tax Form was newly introduced in 2021 tax year. Due to this, only few States included 1099 NEC in the combined State/ Federal filing program. They are listed below:
Alabama:
Alabama State require to file 1099 NEC with the Alabama Department of Revenue.
Colorado:
Colorado require to file 1099 NEC with the Colorado Department of Revenue.
Hawaii:
Hawaii require to file 1099 NEC with the Hawaii Department of taxation.
Vermont:
For 2021 tax year, Vermont Department of Taxes recently released an updated version for 1099 reporting. Filing 1099 with the state which reports state withholding or reporting payments to non-residents for services performed.
Oregon:
Oregon require to file 1099 NEC with the Oregon Department of Revenue.
States released to 1099 NEC reporting update
Other states that have released requirements around reporting 1099 NEC Tax Forms are:
Arizona:
In the tax year 2021, Arizona included to file 1099 NEC Form with their Department of Revenue. Arizona is required to file 1099 NEC with the state if the state withholds income tax under backup withholding rules.
Arkansas:
If Arkansas reports payments withholds of $2,500, then the state requires to e-file 1099 NEC Form.
Delaware:
If non-residents perform work with Delaware, they are required to issue the form to a Delaware resident.
Indiana:
1099 NEC must be filed with the state if the information returns report Indiana state withholding. These payments are filed directly with the Indiana department of revenue.
Kansas:
Kansas requires state filing of the form if the 1099 NEC Form submitted electronically.
New Jersey:
If you are reporting $1,000 or more or if there is state withholding, the 1099 NEC Form is sent to the Division. The 1099 NEC form is reported to the division by February 15, 2021.
North Carolina:
For the 2021 tax year, North Carolina requires to file 1099 NEC if the statement reports North Carolina income tax withheld.
1099 NEC State filing requirements
The following are requirements to file 1099 with the state:
Withholding amount:
If you withheld any state or federal income tax under backup withholding rules, you’re required to enter the amount in the respective box of 1099 NEC Form.
State identification number:
You are required to gather information about the State identification number of the recipients State.
State tax amount:
If the amount you are paying as compensations is more than the state tax amount, then you’re required to file 1099 NEC Form with the state. Enter the state tax amount in the respective box of the Form.
Name of the state:
As you’re withholding state tax, you are required to gather information about the name of the state of the recipient.
When to file 1099 NEC with the state?
You’re required to issue 1099 NEC Form to the IRS and to the recipient by February 1st, 2021. Also furnish Copy 1 of 1099 NEC Tax Form to the state tax department by February 1st, 2021.
Conclsion:
Have you got the required information you’re searching? Then why you are late! Hurry up! You’re near to cross the deadline! File your 1099 NEC Form with us fast and secure. We’ll help you to file 1099 NEC with the State.