E-file your 1099s with states – Avalara (Track1099)

Filing 1099s with states

While the IRS requires businesses to report income paid to contractors, vendors, or employees, many states have their own reporting requirements as well. State filings go to each relevant state’s tax department — to the state where the recipient resides or to the state where the income was earned. Detailed information about filing 1099s with states can be found in Avalara’s 1099 & W-9 desktop procedure for tax year 2025.

Do I need to file 1099s with states?

It depends. Some states participate in the IRS Combined Federal/State Filing Program (CF/SF), which means the IRS automatically forwards certain forms to those states. Other states require businesses to file directly with the state — and some states may have different deadlines or formats.

Tax Year

Combined Federal/State Filing Program for 1099s

The Combined Federal/State Filing (CF/SF) Program was established by the IRS to simplify the process of reporting information returns, such as Form 1099, to both federal and state tax authorities. With the CF/SF program, businesses submit eligible 1099 forms directly to the IRS, which then forwards the data to participating state tax agencies. This reduces the administrative burden on filers and improves compliance and data sharing across jurisdictions.

As of today, 30 states participate in the program, but not all 1099 types are included, and participation is voluntary for both businesses and states.

Participating states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Wisconsin.

The Avalara 1099 & W-9 solution for filing 1099s with states

Avalara 1099 & W-9 supports businesses in managing their information return filings with states, including those under the CF/SF program. Here’s how Avalara 1099 & W-9 works for you:

As you complete your e-filing with the IRS, Avalara 1099 & W-9 analyzes your 1099s to determine if you also need state filings and prompts you to schedule these additional filings.

If you elect not to have Avalara 1099 & W-9 e-file with states on your behalf, you still get the custom-made “state files” for no additional charge that you can then manually upload to individual states’ websites.

For a comprehensive overview of the IRS forms supported by Avalara 1099 & W-9 in each state, refer to this state-by-state guide.

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CUSTOMER STORIES

See what our customers have to say

“Avalara 1099 & W-9 helps Bookkeeper360 file our customers’ 1099s on time and with ease. We couldn’t get through tax season without it!”

—Nick Pasquarosa
CEO, Bookkeeper360

“Avalara 1099 & W-9 is my go-to tool for improving our clients’ compliance with 1099 regulations. It’s also budget-friendly, making it accessible for businesses of varying sizes. Lastly, I love that Avalara allows for easy submissions of corrections, which minimizes stress during the busy year-end close. It’s an invaluable tool in my tech stack.”

—Barbara Harley
Owner, Elmwood Bookkeepers

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Frequently asked questions

Avalara 1099 & W-9 maintains a comprehensive list of frequently asked questions (FAQ) to help users navigate IRS 1099 and W-9 compliance with clarity and confidence.

Live Q&A with 1099 experts

Got questions about the 1099-NEC, 1099-MISC, or 1042-S? Tune into our twice-weekly January webinar and get the answers you need — straight from 1099 and accounts payable professionals.

State 1099 and W-9 filing information