Do I have to file 1099s with Alabama?
| Form | Alabama tax withheld | No withholding |
|---|---|---|
| 1099-NEC | Direct | CF/SF ok |
| 1099-MISC | Direct | CF/SF ok |
| 1099-INT | Direct | CF/SF ok |
| 1099-DIV | Direct | CF/SF ok |
| 1099-R | Direct | CF/SF ok |
| 1099-K | Direct | Direct |
| All other 1099 types | Direct | CF/SF ok |
1099-K duplicates are required for every payee with an Alabama address (Act 2017-294). Other 1099s: Alabama resident payers must file a copy for nonwage payments of $1,500 or more (Rule 810-3-26-.01); without Alabama withholding the CF/SF copy is accepted.
The rules for tax year 2026
| 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. |
| 2026 filing threshold (1099-NEC, 1099-MISC) | Own threshold: $1,500 (state rule); no 2026-specific ALDOR guidance foundAla. Admin. Code r. 810-3-26-.01(1): "All resident payers engaged in a trade or business and making nonwage payments of fifteen hundred dollars ($1,500) or more within a calendar year to any person (whether a resident or nonresident) are required to issue an information return (Federal Form 1099) to the payee and file a copy of such return with the Department." This threshold is set by state rule and does not depend on the federal threshold, so it stays below the new federal $2,000 NEC/MISC threshold. ALDOR has published nothing on P.L. 119-21 or TY2026 thresholds. The 1099 page (https://www.revenue.alabama.gov/individual-corporate/information-return-filing-requirements-1099/) does not state a dollar threshold. A site search found no 2026 bulletin.Source: Rule 810-3-26-.01 |
| State 1099-K threshold | No separate state threshold stated. Payment settlement entities (PSEs) must file duplicates of the federal Form 1099-K for payees with an Alabama address (Act 2017-294; Rule 810-3-26-.03). Due "within 30 days after the federal due date on or before April 30 each year."Source: ALDOR: Form 1099-K |
| State backup withholding | None foundNo Alabama backup withholding rule appears in the sources checked. Rule 810-3-26-.01(5)(b): "Withholding of Alabama income tax from payments described in this section is not mandatory. Voluntary withholding, however, is permitted."Source: Rule 810-3-26-.01All states: state backup and nonresident withholding |
| Withholding on nonresident contractors | Not addressed in the sources checked. Withholding on nonwage 1099 payments is voluntary under Rule 810-3-26-.01(5)(b).Source: Rule 810-3-26-.01All states: state backup and nonresident withholding |
| Where to file | My Alabama Taxes (MAT), used only for 1099s with Alabama withholding (filed with Form A-3) and for 1099-K. 1099s without withholding go by paper or through the IRS CF/SF program. |
| File format for tax year 2026 | Pub 1220 or EFW2; no TY2026 specSee the specifications below. |
| Annual transmittal or reconciliation | Form A-3, Annual Reconciliation of Alabama Income Tax Withheld. Required only if Alabama tax was withheld; 1099s with AL withholding are submitted with it. Paper 1099s without withholding go with Form 1096 per Rule 810-3-26-.01(4)(b).Due: January 31 ("on or before the last day of January following the end of the year")Form: Form A-3 |
| Due dates | 1099s without Alabama withholding: March 15 following year end (paper or CF/SF). 1099s with Alabama withholding: January 31 with Form A-3 through My Alabama Taxes. The page draws no NEC vs. other distinction. 1099-K: within 30 days after the federal due date ("on or before April 30").Source: ALDOR: Information Return Filing Requirements |
| Combined Federal/State (CF/SF) | Alabama accepts CF/SF if no Alabama tax was withheld: "payers may participate in the Combined Federal/State Reporting Program if no Alabama income tax was withheld... Prior approval from ALDOR is not required." Payers who voluntarily withhold cannot use CF/SF. Nothing is said about CF/SF under IRIS.Source: ALDOR: Information Return Filing Requirements |
| Penalties | Rule 810-3-26-.01(6): failure to comply is subject to the penalties in Code of Ala. §40-2A-11, plus "the $50 civil penalty provided for in §40-29-74".Source: Rule 810-3-26-.01 |
Some items for Alabama are not addressed on its pages, or its pages disagree with each other. Those are shown as the state wrote them. Confirm with the department before you file.
How to file, step by step
- Determine which payees received nonwage payments of $1,500 or more in 2026 (Rule 810-3-26-.01).
- If no Alabama tax was withheld, either file through the IRS Combined Federal/State program (no ALDOR approval needed) or mail paper copies with Form 1096 to ALDOR, PO Box 327489, Montgomery AL 36132-7489, by March 15, 2027.
- If Alabama tax was voluntarily withheld, log in to My Alabama Taxes, open the December return list, and choose File Now for Form A-3 and Forms W-2.
- Key the 1099 data or import a .txt file in EFW2 RS format per Form 10 (other income in positions 338-348).
- Complete and submit Form A-3 online by January 31, 2027, and keep the confirmation number.
- PSEs filing 1099-K: after filing with the IRS, upload the Pub 1220 file sorted for Alabama payees through File 1099-K in My Alabama Taxes within 30 days after the federal due date.
File specifications and filing system
- Form 10, Specifications for Filing Wage and Tax Information Electronically (rev. 8/24)
- Form 1099-K page, Specifications
- Filing system: My Alabama Taxes (MAT), used only for 1099s with Alabama withholding (filed with Form A-3) and for 1099-K. 1099s without withholding go by paper or through the IRS CF/SF program.
State pages checked (8)
- https://www.revenue.alabama.gov/individual-corporate/information-return-filing-requirements-1099/
- https://www.revenue.alabama.gov/individual-corporate/electronic-filing-of-withholding-tax-and-annual-reconciliation-of-alabama-income-tax-withheld/
- https://revenue.alabama.gov/sales-use/wrap/
- https://www.revenue.alabama.gov/individual-corporate/form-1099-k/
- https://www.revenue.alabama.gov/wp-content/uploads/2021/12/810-3-26-.011.pdf
- https://revenue.alabama.gov/wp-content/uploads/2024/10/Form_10_0824.pdf
- https://www.revenue.alabama.gov/wp-content/uploads/2022/06/A3_121621.pdf
- https://REVENUE.ALABAMA.GOV/wp-content/uploads/2022/03/WRAP-File-Layout.pdf
Questions people ask about Alabama
Do I have to file 1099s directly with Alabama?
It depends on the form. With Alabama withholding: Direct filing: NEC, MISC, INT, DIV, R, K, all other 1099s. Without withholding: Direct filing: K. CF/SF copy is enough: NEC, MISC, INT, DIV, R, all other 1099s. 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?
1099s without Alabama withholding: March 15 following year end (paper or CF/SF). 1099s with Alabama withholding: January 31 with Form A-3 through My Alabama Taxes. The page draws no NEC vs. other distinction. 1099-K: within 30 days after the federal due date ("on or before April 30").
How do I file 1099s with Alabama?
Determine which payees received nonwage payments of $1,500 or more in 2026 (Rule 810-3-26-.01). If no Alabama tax was withheld, either file through the IRS Combined Federal/State program (no ALDOR approval needed) or mail paper copies with Form 1096 to ALDOR, PO Box 327489, Montgomery AL 36132-7489, by March 15, 2027. If Alabama tax was voluntarily withheld, log in to My Alabama Taxes, open the December return list, and choose File Now for Form A-3 and Forms W-2. Key the 1099 data or import a .txt file in EFW2 RS format per Form 10 (other income in positions 338-348). Complete and submit Form A-3 online by January 31, 2027, and keep the confirmation number. PSEs filing 1099-K: after filing with the IRS, upload the Pub 1220 file sorted for Alabama payees through File 1099-K in My Alabama Taxes within 30 days after the federal due date.
Does Alabama have its own 1099-K threshold?
No separate state threshold stated. Payment settlement entities (PSEs) must file duplicates of the federal Form 1099-K for payees with an Alabama address (Act 2017-294; Rule 810-3-26-.03). Due "within 30 days after the federal due date on or before April 30 each year."
Does Alabama require withholding on payments to nonresident contractors?
Not addressed in the sources checked. Withholding on nonwage 1099 payments is voluntary under Rule 810-3-26-.01(5)(b). The 50-state withholding tables show where Alabama sits.
Each row above links to the state page it came from. Rules change every year, so confirm with the department before filing.
What does not change by state
The federal filing rules for each form (who files, the 2026 thresholds, boxes and due dates) are on the federal forms pages; this page covers only what Alabama adds. TIN matching, B-Notices, backup withholding and the IRC 6721IRC 6721Internal Revenue Code, Cornell LII 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.