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alabama-filing

State Filing Requirements

Alabama State Requires the following Forms:

Form 1099-MISC

Miscellaneous Information

File this form directly with Alabama Department of Revenue (ALDOR) along with Form A-3 (Annual Reconciliation) if state income tax was withheld from reportable payments. If no state income tax was withheld, an approved payer may generally satisfy this requirement through the IRS CFSF Program. Alabama generally requires resident payers to report taxable nonwage payments of $1,500 or more made during the year to any payee. For 2026TY, the federal Form 1099-MISC threshold is generally $2,000 for rents, prizes and awards, other income, medical and health care payments, crop insurance proceeds, among others. But royalties ($10), gross proceeds paid to attorneys ($600), and backup-withholding payments have their own rules.

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Form 1099-NEC

Nonemployee compensation

If Alabama income tax was withheld from a reportable payment, file Form 1099-NEC directly with the ALDOR along with Form A-3. If no state income tax was withheld, an approved payer may generally use the IRS CFSF Program to satisfy state requirements. Alabama generally requires resident payers to report taxable nonwage payments of $1,500 or more made during the year to any payee. For 2026TY, the federal threshold for nonemployee compensation and attorney service fees is $2,000. Federal backup withholding can require filing regardless of payment amount.

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Form 1099-K

Payment Card and Third-Party Network Transactions

Report payment card transactions under the federal rules without a minimum dollar threshold. For third-party network transactions in 2026TY, a payment settlement organization generally must issue Form 1099-K when gross reportable payments exceed $20,000 and the payee has more than 200 transactions during the calendar year. Both conditions must be met. Even when Form 1099-K is submitted to the IRS through the CFSF program, Alabama requires a separate copy directly through My Alabama Taxes.

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Form 1099-B

Broker & Barter Exchange Transactions

If Alabama tax was withheld you must file Form 1099-B directly with Alabama through My Alabama Taxes and submit it with Form A-3. If no Alabama income tax was withheld, then an approved payer may generally use CFSF to satisfy Alabama’s state-copy requirement. For 2026TY, file this form for federally reportable broker sales, redemptions, barter-exchange transactions and other covered proceeds.

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Form 1099-R

Distributions from Pensions and Retirement Plans

If Alabama income tax was withheld, file Form 1099-R directly with Alabama through My Alabama Taxes and submit it with Form A-3. If no Alabama income tax was withheld, then an approved payer may generally use CFSF to satisfy Alabama’s state-copy requirement. Form 1099-R is eligible for CFSF. For 2026 TY, federal reporting generally applies to distributions of $10 or more from pensions, annuities, retirement plans, IRAs and insurance contracts.

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Form 1099-INT

Interest Income

If Alabama income tax was withheld, file Form 1099-INT directly with Alabama through My Alabama Taxes and submit it with Form A-3. If no Alabama income tax was withheld, then an approved payer may generally use CFSF to satisfy Alabama’s state-copy requirement. Form 1099-INT is eligible for CFSF. For 2026TY, federal reporting generally applies to interest of $10 or more with a $2,000 threshold in certain trade-or-business cases for 2026 payments.

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Form W-2G

Certain Gambling Winnings

File Form W-2G when the wagering payment meets the applicable federal reporting rules. Alabama requires 5% withholding on winnings subject to Alabama withholding. You must report Alabama withholding directly through My Alabama Taxes along with Form A-3. This form is not available under the CF/SF program.

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Form 1099-G

Certain Government Payments

If Alabama income tax was withheld you must file Form 1099-G directly with Alabama through My Alabama Taxes and submit it with Form A-3. If no Alabama income tax was withheld, then an approved payer may generally use CF/SF to satisfy Alabama’s state-copy requirement. Form 1099-G is eligible for CF/SF. For 2026TY, file for reportable government payments under the federal Form 1099-G rules, including covered unemployment compensation, state or local income tax refunds, taxable grants, and agricultural payments.

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Form W-2

Wage and Tax Statement

The IRS CFSF Program doesn’t apply to Form W-2. An employer must furnish and file this form along with Form A-3 when it paid Alabama wages of $1,500 or more to an employee during 2026 or withheld any Alabama income tax.

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Key Deadlines for Alabama State Filing Taxes:

1099 with Alabama income tax withheld February 1, 2027 (January 31 is a Sunday)
1099 without Alabama income tax withheld March 15, 2027
You must use an eligible CFSF workflow or file the required paper copies directly with ALDOR.
Alabama duplicate Form 1099-K April 30, 2027
This separate WRAP filing is required even when Form 1099-K is included in CF/SF.
W-2 and A-3 February 1, 2027 (January 31 is a Sunday)

Note:

Alabama generally requires payee statements to be sent out by Jan 31. For 2026TY, since that date is a Sunday, the due date moves to Feb 1, 2027.

Form A-3 is Alabama’s Annual Reconciliation of Income Tax Withheld. Only those W-2s and 1099s showing Alabama withholding are submitted with Form A-3.

eFiling is generally required when you’re submitting 10 or more W-2s and/or 1099s on which Alabama income tax was withheld, or when you filed and paid electronically during the year.

Here’s the paper mailing address for 1099 forms without Alabama withholding: Alabama Department of Revenue, PO Box 327489, Montgomery, AL 36132-7489.

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Alabama State Filing Scenario for the following Forms:

Form CF/SF Participation or Filing Method Pricing
1099-MISC If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
1099-NEC If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
1099-K CF/SF is available, but AL also requires a separate duplicate direct upload through My Alabama Taxes CF/SF: Free
Direct: $0.99 per form
1099-B If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
1099-R If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
1099-G If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
1099-INT If there’s no AL withholding, CFSF may satisfy state-copy requirement; If there’s AL withholding, file directly via My Alabama Taxes (along with Form A-3) CF/SF: Free
Direct: $0.99 per form
W-2G Not eligible for CFSF. So, file directly via My Alabama Taxes along with Form A-3 when state withholding is reported $0.99 per form
W-2 CFSF doesn’t apply here. So, file this along with Form A-3 directly with Alabama. $0.99 per form

Alabama participates in the IRS CFSF Program. When an eligible information return reports no Alabama income tax withholding, the IRS may forward the accepted CFSF record to ALDOR, and the payer generally does not need separate prior approval from Alabama.

If Alabama income tax was voluntarily withheld from a nonwage payment, CFSF does not satisfy the Alabama filing requirement. The payer must file the 1099 directly through My Alabama Taxes and include the withholding information with Form A-3.

Form 1099-K is an exception. Alabama requires a separate duplicate eFiling of Form 1099-K via My Alabama Taxes even when the federal return is submitted through CFSF.

Also, the IRS is retiring the old FIRE system for eFiling information returns and bringing in IRIS in its place. So, for 2026TY returns which are filed in 2027, filers have no option but to use IRIS.

When Alabama reconciliation applies, Tax1099 offers Form A-3 for just $4.99 per form.

State Filing Corrections Pricing:

Correction type Filing method Pricing
1099 corrections Paper $10 per submission + $0.99 per form
W-2C Paper $10 per submission + $0.99 per form

Note:

For a W-2 correction with no Alabama tax change, submit the paper Form W-2C without Form A-3. If the correction changes Alabama tax, file an amended paper Form A-3 with the Form W-2C.

OBBBA update

OBBBA & Its Impact on Alabama 1099 Filing

The One Big Beautiful Bill Act (OBBBA) changes certain federal information reporting thresholds, but it does not eliminate Alabama's separate state reporting rule.

In its OBBBA guidance, the Alabama Department of Revenue identifies the restored Form 1099-K threshold under Internal Revenue Code section 6050W and the increased information reporting threshold under section 6041 as federal-law changes.

For 2026TY federal reporting, Form 1099-NEC and certain 1099-MISC payments use a $2,000 threshold. Federal Form 1099-K reporting for TPSOs generally applies only when gross payments exceed $20,000 and the number of transactions is more than 200.

That said, Alabama’s separate rule still applies. Alabama Code section 40-18-26 and Administrative Rule 810-3-26-.01 generally require resident business payers to report taxable nonwage payments of $1,500 or more. Therefore, a payment of $1,500 through $1,999 may require an Alabama information return even when the federal Form 1099-MISC or Form 1099-NEC threshold has not been met.

Basically, OBBBA does not eliminate Alabama’s filing deadlines or state-specific procedures.

FAQs

It can be. AL requires copies of reportable 1099s even when no Alabama tax was withheld. An eligible accepted CFSF transmission can satisfy that copy requirement.

For 2026TY returns, the due date is March 15, 2027. Use an eligible CFSF transmission or the applicable direct Alabama filing route. Paper 1099 forms without Alabama withholding should be mailed to PO Box 327489, Montgomery, AL 36132-7489.

1099s reporting AL income tax withholding must generally be submitted with Form A-3 by Feb 1, 2027 (Jan 31 falls on Sunday). Submit them via My Alabama Taxes.

No. Form A-3 is the annual reconciliation of Alabama income tax withheld. It accompanies 1099s that report Alabama withholding and is part of the Alabama W-2 filing workflow.

For an eligible accepted Form 1099 with no AL withholding, CFSF generally satisfies the state copy requirement. It does not satisfy Forms 1099 reporting AL withholding, and it does not replace AL's separate duplicate Form 1099-K upload.

A payment settlement entity, third-party settlement organization, electronic payment facilitator, or other covered reporting entity must submit a duplicate Form 1099-K directly to AL through My Alabama Taxes. The federal TPSO threshold is more than $20,000 and more than 200 transactions.

eFiling is required when submitting 10 or more W-2s and/or 1099s reporting AL withholding. It is also required when the filer filed and paid electronically during the year.

An employer must file when it paid AL wages of $1,500 or more to an employee during 2026 or withheld any AL income tax. Forms W-2 and Form A-3 are due Feb 1, 2027.

No. OBBBA only increased the federal threshold to $2,000 for certain payments for 2026TY, but Alabama Code section 40-18-26 and Rule 810-3-26-.01 still state a $1,500 reporting rule for taxable nonwage payments made by resident payers.

Tax1099 can help you with federal filing, eligible CFSF submissions, and supported AL direct-state, Form W-2, Form A-3 and correction workflows so that you don’t have to juggle several tools.

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