Do I have to file 1099s with North Carolina?
| Form | North Carolina tax withheld | No withholding |
|---|---|---|
| 1099-NEC | Direct | Not required |
| 1099-MISC | Direct | Not required |
| 1099-B | Direct | Not required |
| 1099-DIV | Direct | Not required |
| 1099-G | Direct | Not required |
| 1099-INT | Direct | Not required |
| 1099-OID | Direct | Not required |
| W-2G | Direct | Not required |
| 1099-K | Direct | Direct |
| 1099-R | Direct | Direct |
| 1042-S | Direct | Direct |
1099-R is required whenever the recipient address is in North Carolina, and payment settlement entities must file duplicates of every federal 1099-K (G.S. 105-251.2(c)). 1042-S is required if it includes North Carolina source income. Every other form only when NC tax was withheld.
The rules for tax year 2026
| Forms filed with the state | 1099-NEC, MISC, B, DIV, G, INT, OID, W-2G: only if NC tax withheld. 1099-R: required whenever the recipient address is in NC. 1042-S: required if it includes NC-source income. 1099-K: payment settlement entities file duplicates of every federal 1099-K (G.S. 105-251.2(c)). 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. |
| 2026 filing threshold (1099-NEC, 1099-MISC) | Own rule: file 1099-NEC/MISC only if NC tax withheldFAQ/NC-30 Table 1: 1099-NEC and 1099-MISC required "Yes" if NC withholding reported, "No" if none. Spec: "Until further notice, the Secretary will not require taxpayers to submit a copy of federal Form 1099-NEC or federal Form 1099-MISC statements that do not report North Carolina income tax withheld."Source: TY2026 eNC3 1099 File Specifications |
| State 1099-K threshold | Follows federal: G.S. 105-251.2(c) requires payment settlement entities to submit "duplicate copies of all information filed with the IRS pursuant to section 6050W". No separate NC threshold stated. Electronic only, due March 31.Source: NCDOR: Guidance on Information Reporting |
| State backup withholding | YesNC-30 says North Carolina has no provision requiring backup withholding in the federal sense, but G.S. 105-163.1 and 105-163.3 require 4 percent withholding on compensation over $1,500 for services in North Carolina paid to a payee who fails to provide a TIN or a valid TIN, or who provides an ITIN. The trigger is the same TIN failure that starts federal backup withholding.Source: NC-30, 2026 Withholding Tables and InstructionsFull detail: North Carolina backup and nonresident withholding |
| Withholding on nonresident contractors | 4% on nonwage compensation over $1,500 per year to nonresident contractors (performance, entertainment, athletic event, speech, film/radio/TV services only), ITIN contractors, and payees with no or invalid TIN. Report on NC-1099M or federal 1099-NEC/MISC showing NC tax. NC-4 NRA is the employee wage form, not for contractors.Source: NC-30, 2026 Withholding Tables and InstructionsFull detail: North Carolina backup and nonresident withholdingSource: NCDOR: Withholding Tax FAQ |
| Where to file | eNC3 and Information Reporting Application |
| File format for tax year 2026 | IRIS XML onlySee the specifications below. This state accepts or has announced the IRS IRIS XML format; see FIRE to IRIS for how it differs. |
| Annual transmittal or reconciliation | NC-3 Annual Withholding Reconciliation (only if NC tax withheld)Due: January 31Form: NCDOR: eNC3 FAQ |
| Due dates | NC-3 and required W-2/1099 statements due "January 31 of the following calendar year". Spec: deadline is January 31 "except for form 1099-K which is due on or before March 31". Paper filing allowed but triggers $200 format penalty for NC-3 filers.Source: NCDOR: eNC3 FAQ |
| Combined Federal/State (CF/SF) | "Can I use the IRS Combined Federal/State Filing Program (CF/SF) to report the required W-2 and 1099 statements... instead of filing these forms directly with the Department? No. The required W-2 and 1099 statements must be filed directly with the Department." Nothing on CF/SF under IRIS.Source: NCDOR: eNC3 FAQ |
| Penalties | Late: "$50 per day up to a maximum penalty of one thousand dollars ($1,000)" (G.S. 105-236(a)(10)). Not filing electronically: "$200 penalty". Payers not required to file NC-3 "are not subject to the informational return penalties".Source: NCDOR: eNC3 FAQ |
How to file, step by step
- Determine if you withheld NC tax (4%) from nonwage compensation; if not, 1099-NEC/MISC need not be filed with NC.
- If withholding, register for an NC withholding account (Form NC-BR or online); 'APPLIEDFOR' is not accepted.
- Give payees NC-1099M or federal 1099-NEC/MISC showing NC tax withheld by January 31.
- Build an IRIS XML file per the TY2026 NCDOR spec (TINSubmittedTypeCd required) or use manual entry.
- Test and upload in the eNC3 and Information Reporting Application.
- File Form NC-3 with the 1099s electronically by January 31, 2027.
File specifications and filing system
- TY2026 eNC3 1099 (Form 1099, W-2G, 1042-S File Layout Specifications, Revision Date 09-30-2026)
- eNC3 File Format Specifications page
- Filing system: eNC3 and Information Reporting Application
State pages checked (9)
- https://www.ncdor.gov/taxes-forms/withholding-tax/enc3-frequently-asked-questions
- https://www.ncdor.gov/taxes-forms/withholding-tax/withholding-tax-frequently-asked-questions
- https://www.ncdor.gov/taxes-forms/individual-income-tax/personal-taxes-division-directives/pd-10-1-withholding-nonresident-contractors-and-itin-holders
- https://www.ncdor.gov/taxes-forms/withholding-tax/enc3-web-file-upload
- https://www.ncdor.gov/income-tax-withholding-tables-and-instructions-employers/open
- https://www.ncdor.gov/taxes-forms/withholding-tax/enc3-web-file-upload/enc3-file-format-specifications
- https://www.ncdor.gov/ty2026enc3filespecs1099-w2g-1042spdf/download?attachment
- https://www.ncdor.gov/taxes-forms/withholding-tax/enc3
- https://www.ncdor.gov/file-pay/guidance-information-reporting
Questions people ask about North Carolina
Do I have to file 1099s directly with North Carolina?
It depends on the form. With North Carolina withholding: Direct filing: NEC, MISC, B, DIV, G, INT, OID, W-2G, K, R, 1042-S. Without withholding: Direct filing: K, R, 1042-S. Not required: NEC, MISC, B, DIV, G, INT, OID, W-2G. 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, B, DIV, G, INT, OID, W-2G: only if NC tax withheld. 1099-R: required whenever the recipient address is in NC. 1042-S: required if it includes NC-source income. 1099-K: payment settlement entities file duplicates of every federal 1099-K (G.S. 105-251.2(c)). NC-1099M for nonresident contractor withholding.
When are 1099s due in North Carolina?
NC-3 and required W-2/1099 statements due "January 31 of the following calendar year". Spec: deadline is January 31 "except for form 1099-K which is due on or before March 31". Paper filing allowed but triggers $200 format penalty for NC-3 filers.
How do I file 1099s with North Carolina?
Determine if you withheld NC tax (4%) from nonwage compensation; if not, 1099-NEC/MISC need not be filed with NC. If withholding, register for an NC withholding account (Form NC-BR or online); 'APPLIEDFOR' is not accepted. Give payees NC-1099M or federal 1099-NEC/MISC showing NC tax withheld by January 31. Build an IRIS XML file per the TY2026 NCDOR spec (TINSubmittedTypeCd required) or use manual entry. Test and upload in the eNC3 and Information Reporting Application. File Form NC-3 with the 1099s electronically by January 31, 2027.
Does North Carolina have its own 1099-K threshold?
Follows federal: G.S. 105-251.2(c) requires payment settlement entities to submit "duplicate copies of all information filed with the IRS pursuant to section 6050W". No separate NC threshold stated. Electronic only, due March 31.
Does North Carolina require withholding on payments to nonresident contractors?
4% on nonwage compensation over $1,500 per year to nonresident contractors (performance, entertainment, athletic event, speech, film/radio/TV services only), ITIN contractors, and payees with no or invalid TIN. Report on NC-1099M or federal 1099-NEC/MISC showing NC tax. NC-4 NRA is the employee wage form, not for contractors. See the North Carolina backup and nonresident withholding page for the trigger, rate, forms and statute.
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 North Carolina adds. TIN matching, B-Notices, backup withholding and the IRC 6721IRC 6721Internal Revenue Code, Cornell LII 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.