Yes, you can e file state 1099s with federal 1099 forms. This will depend on the state you are filing for, the form you are filing, and if you have gone through the approval process.
The approval process is two-fold:
- Obtain a Transmitter Control Code (TCC)
- Submit a test file
A TCC can be obtained by completing Form 4419 and mailing or faxing it to the IRS. You will not be able to electronically file unless this form has been completed and submitted. Form 4419 should be completed as early as possible in order to receive a response before the e-file due date, March 31st. In prior years, responses have taken 30 days and significantly more as the due date approaches. We recommend submitting the form as soon as you anticipate needing to e file state 1099s with federal 1099s.
The IRS will share the data from certain 1099 forms with your state. However, you will need to submit a test file through the IRS FIRE test system first. A test file can only be sent from November 1st through February 15th. We recommend sending your test file as early as possible during this time frame, just in case anything goes wrong.
What information is shared by the IRS?
The following forms, taken from IRS Publication 1220, will be shared with the appropriate state when you participate in the Combined Federal/State Filing Program:
- Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
- Form 1099-DIV, Dividends and Distributions
- Form 1099-G, Certain Government Payments
- Form 1099-INT, Interest Income
- Form 1099-K, Payment Card and Third Party Network Transactions
- Form 1099-MISC, Miscellaneous Income
- Form 1099-OID. Original Issue Discount
- Form 1099-PATR, Taxable Distributions Received From Cooperatives
- Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- Form 5498, IRA Contribution Information
Remember that individual states have their own requirements, and your state may not accept this combined federal filing program. The states that participate are shown in the table below:
|District of Columbia||Minnesota||Utah|
Software Solutions to Help E File State 1099s with Federal 1099s
Advanced Micro Solutions’ software module, E-File Direct, can create a test file that meets IRS requirements for getting approved to participate in the Combined Federal/State Filing Program. E-File Direct also allows you to file an unlimited number of W-2 and 1099 forms with the appropriate agency. Remember that, you need additional W-2 and 1099 form support, our base software, the W2 and 1099 Forms Filer, can provide additional help. If you’re looking for state-specific tax and wage report, our Forms Filer Plus and Payroll Software offer a variety of state and local form support perfect for businesses of all sizes. Even if your state does not allow employers to e file state 1099s with federal 1099 forms, our products can provide assistance.
Advanced Micro Solutions offers a free Demo so that you can make sure the software fits your needs. Free Technical Support is offered Monday thru Friday from 8am-6pm CT, with extended hours in January and April (8am-7PM and Saturday 10-am-4pm).