States in the Combined Federal/State Filing program
When you e-file 1099s with the IRS through FIRE or IRIS and elect the CF/SF program, the IRS forwards the returns to these states, which accept the forward as the state filing for the form types the program covers (1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR, R and 5498). Per Publication 1220, the participants are:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Wisconsin.
Participating does not always mean sufficient. Several CF/SF states still require a direct filing when state tax was withheld, or for form types the program doesn't carry, or want a state reconciliation form. Check the state's own 1099 instructions even when it's on the list.
States that require direct filing or have extra rules
States with an income tax that are not in the CF/SF list above generally require you to file 1099s directly with the state, usually electronically, often by the same January 31 date and often only when the payee is a resident or state tax was withheld. As of this page's date that group includes, among others, Illinois, Iowa, Kentucky, New York, Oregon, Utah, Vermont, Virginia and West Virginia; some (New York, for example) require few or no 1099-NEC filings at all, while others (Oregon's iWire, Virginia, Utah) require most of them. Because these rules move every year, the only safe procedure is to check each state where you have resident payees or withholding, before filing season, against the state revenue department's current instructions.
Extra rules to look for in any state: a state reconciliation or transmittal form (many states with withholding); a requirement to file 1099-K even when the federal threshold isn't met (several states set lower 1099-K thresholds); and a different due date for direct filings.
States with no individual income tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. No state 1099 filing for payees resident there (Washington and Tennessee have business taxes but no individual income-tax 1099 regime; New Hampshire's interest-and-dividends tax was repealed for 2025).
State withholding on payments to non-residents
A few states require the payer to withhold state income tax on certain payments to non-residents, independent of federal backup withholding. The largest is California: payers must withhold 7% on California-source payments (including compensation for services performed in California, rents and royalties) to non-resident payees once payments exceed $1,500 in a calendar year, reported on Forms 592 and 592-B, unless the payee provides a waiver or reduced-rate certificate (Form 588 / 589). Several other states have non-resident withholding on specific income types (partnership distributions, real-estate sales, entertainer and athlete payments). If you pay non-resident individuals or out-of-state contractors for work done in a state with such a rule, that state's withholding runs alongside, not instead of, the federal rules on this site.
State exclusion lists
Federal healthcare programs require screening against the HHS-OIG LEIE; most states also maintain a Medicaid exclusion or sanction list that must be checked for anyone whose work is billed to that state's Medicaid program, and state procurement offices maintain debarment lists for state-funded contracts. Coverage and update frequency vary widely. A screening program for a healthcare or public-sector payer should name the specific state lists it checks and the cadence.
Questions people ask
Do states send their own version of a CP2100?
Generally no. TIN matching and B-Notices are federal. States that receive your 1099s may reject a file for a missing TIN or send a notice for withholding discrepancies, but the name/TIN match program is the IRS's.
If I file through CF/SF, do I still need a state withholding account?
If you withheld state tax, yes: the withholding is remitted and reconciled with the state directly, and most states then also want the 1099s filed directly regardless of CF/SF.
Which state do I file in for a contractor who worked remotely?
Usually the state of the contractor's residence for 1099 purposes, and the state where services were performed for any non-resident withholding rule. Both can apply.