What Are Your 1099-MISC State Filing Requirements? 

OBBBA Update

The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025. For the 2026 tax year, several federal Form 1099-MISC reporting thresholds increase from $600 to $2,000. However, state filing rules and thresholds may not match the new federal amounts. Always confirm each state’s requirements before filing.

If your business made at least one of these payments to a 1099 vendor within the financial year, you must record the amount on Form 1099-MISC.

The following federal Form 1099-MISC categories are reportable at $2,000 or more:

• Rents
• Prizes, awards, and other income
• Medical and health care payments
• Crop insurance proceeds

These categories retain their own thresholds:

• Royalties: $10 or more
• Substitute payments in lieu of dividends or tax-exempt interest: $10 or more
• Gross proceeds paid to attorneys: $600 or more
• Fish purchased for resale (cash payments): $600 or more
• Fishing boat crew proceeds: all amounts
• Section 409A deferrals (Box 12, optional): $600 or more
• Section 409A income (Box 15): all includible amounts

If backup withholding applies, file Form 1099-MISC even when the payment is below the normal threshold.

1099-MISC state filing requirements

For Form 1099-MISC, the IRS deadline is February 28 (paper) or March 31 (electronic) each year, with copies provided to the taxpayer by January 31. Adjustments are made if these dates fall on a weekend, shifting the deadline to the next business day. State deadlines and roll-forward rules vary by state, so confirm each state’s due date and filing rules.

Which State Controls the Filing?

Before checking the state lists below, identify which state is connected to the payment. The relevant state is usually tied to where the recipient earned the income or where the income-producing property is located, and not where your business is headquartered.

For example, rent paid for property in Ohio may create a filing obligation in Ohio even if the payer is based in Texas. If the recipient’s address, work location, and payment source point to different states, review each state’s rules individually before assuming a single filing covers the payment.

New State Filing Requirements

Combined State/Federal Program Participants

Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, North Carolina, South Carolina, Vermont, Virginia, Wisconsin.

States with no separate 1099-MISC filing requirement:

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

States that require 1099-MISC filing, if you withheld state taxes:

Federal thresholds for the 2026 tax year may not match state filing requirements. Confirm each state’s threshold and filing rules before submitting:

Arizona, Colorado, Georgia, Iowa, Kentucky, Maryland, Nebraska, North Carolina, Ohio, Rhode Island, South Carolina, Utah, Virginia, and West Virginia.

States that require a separate 1099-MISC filing or are unclear on their filing requirements:

Iowa, Massachusetts, Oklahoma, Oregon, Pennsylvania, and Washington DC.

1099-MISC Filing Required

State Portal and Filing Fee:

Zenwork facilitates the direct submission of 1099-MISC forms to specific states through their State Portal. For this service, there’s an additional state filing fee that you will be asked to approve when electronically transmitting to the IRS.

Before submitting a direct state filing, confirm the form includes all data the receiving state expects. Common requirements include:

• The payer’s state withholding account number or registration ID
• State tax withheld (if applicable)
• State income amount
• The correct state code
• Any required state reconciliation or transmittal form

Some states accept a federal EIN when no withholding account exists. Others will reject filings missing the state ID or portal registration. If you file in multiple states, review each one separately rather than assuming the same ID, threshold, or submission method applies across the board.

CFSF Program:

The CFSF program, short for Combined Federal/State Filing, lets the IRS share accepted federal 1099 data with participating states. This can eliminate a separate state submission when the state accepts CFSF for the form type and the return was filed electronically.

However, CFSF does not remove every state filing obligation. A separate action may still be needed when:

• The state requires direct portal filing
• State tax was withheld and must be reported to the state separately
• The state has a lower filing threshold than the federal rule
• The state requires a state withholding or registration ID on the form
• The return was filed on paper rather than electronically

Check each state’s specific rules before relying on CFSF as your only submission method.

States Requiring Direct Filing:

Some states are part of the CFSF program, but still necessitate direct filing with the state. Your 1099 provider should assist in submitting forms directly to these states.

State Withholding and Filing Rep:

If a state requires filing only if state taxes were withheld, you can update the amount withheld in your Dashboard’s form settings. When filing 1099-MISC forms in the Dashboard, forms eligible for state filing and with state tax withheld are automatically exported for direct filing with the respective states.