The rules
| Forms filed with the state | Any federal 1099 (NEC, MISC, INT, DIV, R, etc.) on which Alabama tax was withheld; Form 1099-K duplicates for payees with an Alabama address (Act 2017-294). Other 1099s without withholding may be filed on paper or via CF/SF. |
| Who must file | Payers that withheld Alabama income tax from 1099 payments (withholding is voluntary); payment settlement entities/TPSOs that file 1099-K with the IRS for Alabama-address payees. |
| Due date | January 31 for 1099s with Alabama withholding (with Form A-3); 1099-K within 30 days of the IRS due date, i.e., April 30; 1099s without withholding filed on paper by March 15. |
| How | My Alabama Taxes (MAT). 1099s with withholding are e-filed with Form A-3 (Form 10 layout; e-file required at 10 or more W-2/1099s). 1099-K uploaded via MAT ‘File 1099-K’ using the IRS Pub 1220 file, after IRS filing. |
| State 1099-K threshold | None; follows federal. ALDOR requires a duplicate of whatever 1099-K was filed with the IRS for Alabama-address payees. |
| Nonresident withholding | None for independent contractors; ALDOR states withholding from 1099 distributions is not mandatory but may be done voluntarily (register for a withholding account). |
- CF/SF is accepted only for 1099s with no Alabama withholding; 1099s with withholding and 1099-K duplicates must be filed directly through MAT.
- State pages are undated/evergreen; no tax-year-2026 changes announced as of September 2026.
Questions people ask about Alabama
Do I have to file 1099s directly with Alabama?
Yes, when Alabama tax was withheld on the payment. Even without withholding, Alabama requires a direct filing in some cases. Payers that withheld Alabama income tax from 1099 payments (withholding is voluntary); payment settlement entities/TPSOs that file 1099-K with the IRS for Alabama-address payees.
Which 1099 forms does Alabama require?
Any federal 1099 (NEC, MISC, INT, DIV, R, etc.) on which Alabama tax was withheld; Form 1099-K duplicates for payees with an Alabama address (Act 2017-294). Other 1099s without withholding may be filed on paper or via CF/SF.
When are 1099s due in Alabama?
January 31 for 1099s with Alabama withholding (with Form A-3); 1099-K within 30 days of the IRS due date, i.e., April 30; 1099s without withholding filed on paper by March 15.
How do I file 1099s with Alabama?
My Alabama Taxes (MAT). 1099s with withholding are e-filed with Form A-3 (Form 10 layout; e-file required at 10 or more W-2/1099s). 1099-K uploaded via MAT ‘File 1099-K’ using the IRS Pub 1220 file, after IRS filing.
Does Alabama have its own 1099-K threshold?
None; follows federal. ALDOR requires a duplicate of whatever 1099-K was filed with the IRS for Alabama-address payees.
Does Alabama require withholding on payments to nonresident contractors?
None for independent contractors; ALDOR states withholding from 1099 distributions is not mandatory but may be done voluntarily (register for a withholding account).
Verified September 24, 2026 against https://www.revenue.alabama.gov/individual-corporate/information-return-filing-requirement…. Rules change annually and most states had not yet posted 2026 specifications at the time of review; confirm before filing.
What does not change by state
TIN matching, B-Notices, backup withholding and the IRC 6721 penalty are federal. A payee in Alabama who gives you a name/TIN pair that does not match IRS records produces the same CP2100 line as one anywhere else, and the same 15- and 30-business-day clocks. State filing is a separate obligation layered on top.