1. Filing with the IRS
Filing Copy A with the IRS is a crucial part of the tax filing process for both forms. There are two methods for filing Copy A:
- Electronic filing: This is the fastest way to get it done. You’ll use the IRS’ FIRE (Filing Information Returns Electronically) system, which allows you to submit your forms faster with fewer errors. If you use accounting software with payroll integrations like QuickBooks Payroll, you can e-file directly from your software.
- Paper filing: This is the slower option. You’ll submit your copies by mail to a specific address, depending on where your business is.
If you use accounting software or contractor payment services, they can likely file electronically for you.
2. Sending copies to the recipient
Next, you’ll send the recipient their copies—Copy B and Copy 2. With their consent, you can send the form electronically. Again, if you use software or a service, they can likely send these for you.
3. State filing requirements
State filing requirements for Forms 1099-MISC and 1099-NEC vary depending on the state. Some states require you to file these forms with the state, while others do not have such requirements.
States exempt from 1099 filing include Alaska, Florida, Illinois, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you are a business or independent contractor operating in these states, you do not have to submit 1099 forms to the state.
Filing requirements can change, so you’ll want to check with each state's tax authority for the most up-to-date information.