It can be difficult to know how many copies of 1099 go to the recipient. However, the answer is simple: Two copies of Form 1099 are sent to the recipient.
Well, OK, in 2025 it is a bit more complicated. There is a reason why recipients must receive two copies. They must be able to include:
- One form with their federal returns
- One form with their state returns
There are also a few reasons why it may not be absolutely essential to send out a second paper copy. We have outlined the reasons below. A second paper copy is not necessarily sent if:
- The payer and payee are in a state with no income tax assessed for that 1099 filing
- You have an understanding with a recipient to electronically file the 1099 information
For the first scenario, keep in mind that the recipient may be a resident of a different state. Are you sure you know the laws of both states well enough to know the 1099 Copy 2 is superfluous for the recipient? Comprehensive software should be able to assist you with the exceptions and carve-outs, including:
- Tennessee
- New Hampshire
These two states do not have a personal income tax, but they do levy taxes on dividends and investment income. As for e-filing 1099 information, eliminating paper filing on your end of the process means that the recipient is inclined to e-file their returns as well. That practice is more common in recent years with the help of comprehensive modular tools like 1099-etc software.
Know the Different Copies of a 1099 Form
For many employers, all five copies of the 1099 form are essential:
- Copy A – Goes to the IRS
- Copy 1 – Goes to the state tax agency
- Copy 2 – Goes to the recipient
- Copy B – Goes to the recipient
- Copy C – Stays with the employer for record keeping
To elaborate on the differences between Copy B and Copy 2, the former is specifically for the recipient’s records. It is how recipients know how much you report to the IRS. Copy 2 goes to the state income tax return.
So, are there any differences between any of these copies? Not really.
Copy A is often transmitted electronically to the IRS and employers rarely need to print it. You should otherwise print both copies for yourself and both for your 1099 vendor.
If you are making a switch to an electronic 1099 distribution and filing method, you will not need to worry about the number of copies. You and the recipient can print or e-file as needed.
Frequently Asked Questions
- Is it ever too late to send a 1099 form to its recipient? – Simply stated, no. Correcting an oversight as soon as you discover it will allow you to minimize the cost of 1099 penalties while staying on top of your records.
- When do I need to issue a corrected 1099 form? – As soon as possible, but there is a degree of leniency. The IRS does not impose hard deadlines for filing amended 1099s, but you should amend an erroneous form as soon as you notice it. The IRS prefers to receive these amended forms within three years of the original filing date.
Software Solutions for 1099 Forms
If you have not yet made that switch, it may be in your best interest to send both Copy 2 and Copy B to the recipient. It is always better to play it safe, even if you are unsure if Copy 2 will actually be unnecessary for your state’s income tax return.
That is especially true for payers who employ remote payees, a subcategory that accounts for approximately 32.6 million Americans, or roughly 22% of the U.S. workforce. Or perhaps your contractor recently moved to a new state. Or maybe the state’s income tax return is drastically different from what you are used to navigating.
Rather than spending extra time and resources to send a copy and simply avoid researching state-specific income tax laws and returns, you can invest in tax software. Using software will likely be a more affordable, long-term solution. Gaining easy insight into state and federal tax liabilities at any time is possible through a View command tool.
The easiest way to get these 1099s completed and submitted in a timely fashion is to invest in a software solution. Our W-2/1099 Forms Filer is a great place to start. Draft and distribute every type of W-2 and 1099 with reliable precision. Using the tool, it will not matter how many copies of 1099s go to the recipient.