1099-NEC State Reporting Requirements TY2020

The 1099-NEC will not be part of the IRS Combined Federal State Filing Program for TY2020.  If you have an obligation to report 1099-NEC directly to states, you should follow the instructions below when formatting your 1099-NEC file:

1. Populate Box 5 State tax withheld if there is an amount to report.
2. Populate Box 6 State/Payer state no. Format as State Code/State Payer Account Number (Ex: DE/12345678). This is a mandatory field for state reporting. *
3. Populate Box 7 State Income with the amount attributable to that state.

If you populate Box 6 State/Payer state number, we will file with that state’s department of revenue. *

Below is a preliminary list of states where you may be required to file directly.