The rules
| Forms filed with the state | 1099-NEC, MISC, K, B, DIV, G, INT, OID, W-2G: only if NC tax withheld. 1099-R: required whenever recipient address is in NC. 1042-S if NC-source income. NC-1099M for nonresident contractor withholding. |
| Who must file | Every payer that withheld NC income tax (plus all 1099-R issuers to NC addresses). Statements must be filed directly with NCDOR with Form NC-3; CF/SF does not satisfy. |
| Due date | January 31 for NC-3 and all W-2/1099 statements. |
| How | eNC3 and Information Reporting Application (electronic mandatory for all filers; $200 penalty for non-electronic format; waiver via NC-5501). Transmittal: Form NC-3. |
| State 1099-K threshold | None; federal threshold applies, and 1099-K is filed only if NC tax withheld. |
| Nonresident withholding | 4% on compensation over $1,500/year paid to nonresident contractors (individuals or entities) for personal services in NC, and to ITIN contractors; report on NC-1099M/1099-NEC and NC-3. |
- Late penalty $50/day up to $1,000.
- Nonresident contractor rule source: https://www.ncdor.gov/taxes-forms/withholding-tax/withholding-tax-frequently-asked-questions
Questions people ask about North Carolina
Do I have to file 1099s directly with North Carolina?
Yes, when North Carolina tax was withheld on the payment. Even without withholding, North Carolina requires a direct filing in some cases. Every payer that withheld NC income tax (plus all 1099-R issuers to NC addresses). Statements must be filed directly with NCDOR with Form NC-3; CF/SF does not satisfy.
Which 1099 forms does North Carolina require?
1099-NEC, MISC, K, B, DIV, G, INT, OID, W-2G: only if NC tax withheld. 1099-R: required whenever recipient address is in NC. 1042-S if NC-source income. NC-1099M for nonresident contractor withholding.
When are 1099s due in North Carolina?
January 31 for NC-3 and all W-2/1099 statements.
How do I file 1099s with North Carolina?
eNC3 and Information Reporting Application (electronic mandatory for all filers; $200 penalty for non-electronic format; waiver via NC-5501). Transmittal: Form NC-3.
Does North Carolina have its own 1099-K threshold?
None; federal threshold applies, and 1099-K is filed only if NC tax withheld.
Does North Carolina require withholding on payments to nonresident contractors?
4% on compensation over $1,500/year paid to nonresident contractors (individuals or entities) for personal services in NC, and to ITIN contractors; report on NC-1099M/1099-NEC and NC-3.
Verified September 24, 2026 against https://www.ncdor.gov/taxes-forms/withholding-tax/enc3-frequently-asked-questions. 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 North Carolina 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.