Do I have to file 1099s with Vermont?
| Form | Vermont tax withheld | No withholding |
|---|---|---|
| 1099-B | Direct | Not required |
| 1099-DIV | Direct | Not required |
| 1099-G | Direct | Not required |
| 1099-INT | Direct | Not required |
| 1099-K | Direct | Direct |
| 1099-MISC | Direct | Direct |
| 1099-NEC | Direct | Direct |
| 1099-OID | Direct | Not required |
| 1099-PATR | Direct | Not required |
| 1099-R | Direct | Not required |
1099-K at the IRC 6041IRC 6041Internal Revenue Code, Cornell LII amount, and NEC or MISC for any nonresident who performed services in Vermont, are required without withholding; other forms only when Vermont tax was withheld.
The rules for tax year 2026
| Forms filed with the state | 1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR and R (and W-2) when Vermont tax was withheld; any 1099 issued to a nonresident who performed services in Vermont; and 1099-K duplicates for payees with a Vermont address (32 V.S.A. 5862d). |
| Who must file | Payers with Vermont withholding (residents, or nonresidents for services performed in Vermont); any business required to file a federal 1099 for a nonresident who performed services in Vermont, even without withholding; payment settlement entities/TPSOs for Vermont-address payees. |
| 2026 filing threshold (1099-NEC, 1099-MISC) | Follows federal ($2,000), per department page32 V.S.A. 5862d(a): payers "required to file a federal form 1099 with respect to a nonresident who performed services within the State" must file a copy. Department page: contractors "receive a 1099-MISC, as long as earnings are above a $2,000 threshold." 1099s with VT withholding also filed with WHT-434.Source: Vermont Tax: 1099-K FAQ |
| State 1099-K threshold | $2,000. 5862d(b): TPSOs report Vermont-address payees "as if the de minimis limitations of 26 U.S.C. 6050W(e)IRC 26Internal Revenue Code, Cornell LII did not apply, but that the de minimis limitations of 26 U.S.C. 6041(a)IRC 26Internal Revenue Code, Cornell LII did apply." Department: "pays an individual $2,000 or more, they will issue a 1099-K and provide to the Department."Source: 32 V.S.A. 5862d |
| State backup withholding | Yes32 V.S.A. 5841(a): persons required to withhold federal tax on payments also subject to VT tax must withhold "such amount as the Commissioner shall prescribe"; banks are not required to withhold VT tax "from payments that are subject to federal back-up withholding." No specific backup rate found published.Source: 32 V.S.A. 5841Full detail: Vermont backup and nonresident withholding |
| Withholding on nonresident contractors | Not addressed for nonresident contractors; instead 5862d(a) requires filing 1099 copies for nonresidents who performed services in VT.Source: 32 V.S.A. 5862dFull detail: Vermont backup and nonresident withholding |
| Where to file | myVTax: File W-2 / 1099 / WHT-434 |
| File format for tax year 2026 | Pub 1220See the specifications below. |
| Annual transmittal or reconciliation | WHT-434 Annual Withholding Reconciliation (transmittal for W-2/1099)Due: January 31; for 12/31/2026 period the due-date table lists 2/1/2027Form: GB-1210, 2026 Withholding Instructions |
| Due dates | WHT-434 and W-2/1099 due January 31 (2/1/2027 for TY2026 per table). 1099-K: "within 30 days of the date the filing is due to the Internal Revenue Service" (5862d(b)). Electronic required for 10+ W-2/1099 forms.Source: Vermont Tax: Withholding for Employers |
| Combined Federal/State (CF/SF) | "The Vermont Department of Taxes no longer participates in the Combined Fed/State program for submitting W-2 and 1099 forms with the IRS. You must file these forms directly with the department." Nothing on IRIS.Source: GB-1210, 2026 Withholding Instructions |
| Penalties | 5862d(c): failure to provide required 1099 information "shall be considered a failure to provide a return or return information" for 32 V.S.A. 3202, 5863 and 5864. Specific amounts not stated on pages checked.Source: 32 V.S.A. 5862d |
Some items for Vermont 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
- Identify 1099s with VT withholding, 1099s for nonresidents who performed services in VT, and (TPSOs) 1099-Ks for VT-address payees at $2,000+.
- Log in to myVTax and select File W-2 / 1099 / WHT-434.
- For bulk files, use Test File Format to validate a Pub 1220 file with the VT account number in B record 663-722.
- Attach the file under the matching Form Upload type and Submit; keep the confirmation.
- Or manually enter forms (1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR, R) in myVTax.
- File WHT-434 by the due date (2/1/2027 for TY2026); 1099-K within 30 days after the IRS due date.
File specifications and filing system
- Vermont 1099 Information E-filing Specifications (GB-1117, revised November 2025)
- Filing system: myVTax: File W-2 / 1099 / WHT-434
State pages checked (12)
- https://tax.vermont.gov/business/withholding/1099-specifications
- https://tax.vermont.gov/sites/tax/files/documents/GB-1117.pdf
- https://tax.vermont.gov/sites/tax/files/documents/GB-1210-2026.pdf
- https://tax.vermont.gov/sites/tax/files/documents/GB-1098.pdf
- https://tax.vermont.gov/business-and-corp/withholding-tax/instructions
- https://tax.vermont.gov/business/withholding
- https://tax.vermont.gov/myvtax/submit-w-2s-1099s-wht-434
- https://tax.vermont.gov/business-and-corp/withholding-tax/1099-k
- https://tax.vermont.gov/business-and-corp/withholding-tax/faqs
- https://legislature.vermont.gov/statutes/section/32/151/05862d
- https://legislature.vermont.gov/statutes/section/32/151/05841
- https://legislature.vermont.gov/statutes/section/32/151/05843
Questions people ask about Vermont
Do I have to file 1099s directly with Vermont?
It depends on the form. With Vermont withholding: Direct filing: B, DIV, G, INT, K, MISC, NEC, OID, PATR, R. Without withholding: Direct filing: K, MISC, NEC. Not required: B, DIV, G, INT, OID, PATR, R. Payers with Vermont withholding (residents, or nonresidents for services performed in Vermont); any business required to file a federal 1099 for a nonresident who performed services in Vermont, even without withholding; payment settlement entities/TPSOs for Vermont-address payees.
Which 1099 forms does Vermont require?
1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR and R (and W-2) when Vermont tax was withheld; any 1099 issued to a nonresident who performed services in Vermont; and 1099-K duplicates for payees with a Vermont address (32 V.S.A. 5862d).
When are 1099s due in Vermont?
WHT-434 and W-2/1099 due January 31 (2/1/2027 for TY2026 per table). 1099-K: "within 30 days of the date the filing is due to the Internal Revenue Service" (5862d(b)). Electronic required for 10+ W-2/1099 forms.
How do I file 1099s with Vermont?
Identify 1099s with VT withholding, 1099s for nonresidents who performed services in VT, and (TPSOs) 1099-Ks for VT-address payees at $2,000+. Log in to myVTax and select File W-2 / 1099 / WHT-434. For bulk files, use Test File Format to validate a Pub 1220 file with the VT account number in B record 663-722. Attach the file under the matching Form Upload type and Submit; keep the confirmation. Or manually enter forms (1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR, R) in myVTax. File WHT-434 by the due date (2/1/2027 for TY2026); 1099-K within 30 days after the IRS due date.
Does Vermont have its own 1099-K threshold?
$2,000. 5862d(b): TPSOs report Vermont-address payees "as if the de minimis limitations of 26 U.S.C. 6050W(e)IRC 26Internal Revenue Code, Cornell LII did not apply, but that the de minimis limitations of 26 U.S.C. 6041(a)IRC 26Internal Revenue Code, Cornell LII did apply." Department: "pays an individual $2,000 or more, they will issue a 1099-K and provide to the Department."
Does Vermont require withholding on payments to nonresident contractors?
Not addressed for nonresident contractors; instead 5862d(a) requires filing 1099 copies for nonresidents who performed services in VT. See the Vermont 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 Vermont adds. TIN matching, B-Notices, backup withholding and the IRC 6721IRC 6721Internal Revenue Code, Cornell LII penalty are federal. A payee in Vermont 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.