File tax forms with states
When you file your 1099 forms from the Tax forms view in the Dashboard, Stripe submits your forms to the IRS and all of the states that participate in the Combined Federal / State Filing (CFSF) program. For states that don’t participate in the CFSF program or that have a direct filing requirement with the state, Stripe provides the required reports for you to submit to each state.
The CFSF program supports forms 1099-K and 1099-MISC, so your federal filing handles filing in supported states. Certain states still require direct filing with the state, even though they participate in the CFSF program.
State requirements are subject to change, particularly for the 1099-NEC form. Work with your tax advisor to ensure you understand the tax requirements specific to your business.
Prepare to file with the states
Before filing with individual states, do the following:
Choose the tax form type in the Dashboard.
Choose the tax form type (or types) you’ll file: 1099-K, 1099-NEC, or 1099-MISC. Each state has different requirements for each form type. Because the 1099-NEC form is a new addition for the 2020 tax year, it’s not included in the CFSF, which means you may need to submit non-employee compensation for your connected accounts directly to the states.
Determine the states where your connected accounts are based.
In the Dashboard, you can either export a CSV file with state information (reported in the payee_region column) or filter by Payee state.
Determine which states you’ll file with.
After you identify the forms to file and the states for your 1099-eligible connected accounts, you must create an account with the state revenue portal (e.g., My Alabama Taxes for Alabama) to submit the forms, based on the direct state filing requirement. For example, perhaps the state doesn’t participate in the CFSF program for the particular form, or the state has an additional requirement to submit directly even if the state participates in the CFSF program.
Set up your accounts early because it can take time for the states to process them. The state typically asks for company information, such as the name, federal tax ID, and contact information. Some state 1099 filings also require a State Tax Registration ID. Refer to the table below to determine where you may need state online accounts and IDs.
1099 requirements
Add the State Tax Registration ID.
After you obtain the State Tax Registration ID, add the states in which you’ll file and the corresponding State Tax Registration ID on the Tax forms settings page. In the Dashboard, click Settings. On Product settings, under Connect, click Tax form settings.
Generate and access state reports
Stripe generates the 1099 reports (in a format called Pub 1220) for each state using the following criteria:
- The address of the recipient determines the applicable state.
- The state files include any recipient who meets the state reporting criteria or for whom you withheld state taxes.
- The state files include your state ID, if provided.
Stripe doesn’t generate state-specific CSV files automatically. If any states require a CSV file upload, you must prepare those files using the information from the available export files, which you can filter by state.
In the Dashboard, on Tax forms, click the File button, choose Export state files, and then confirm your payer details.
Next, verify the filing details, including the list of states that require a State Registration ID. You can provide state registration IDs at any time to generate missing reports.
You can access the reports for each state on the Exports & imports tab.
The naming pattern is as follows:
- Zip file - pub1220_{your_platform_account_id}_{date}.zip
- Report file - pub1220_{your_platform_account_id}{state}{date}.zip
You shouldn’t manipulate the exported file because it can cause a state to reject the file. For example, opening and saving the file may change the line endings. If you need to open the exported file, we suggest downloading a new copy before submitting to state portals.
If a state has a lower threshold than the IRS threshold (e.g., 1,000 USD for state and 20,000 USD volume plus 200 transactions for IRS), you may have connected accounts that are only eligible for state filing and not with the IRS. This means that when you use Stripe to file your forms with the IRS, 1099 forms for the state aren’t mailed to these connected accounts until you finish generating state reports.
If you use CSV import to override the default delivery method, this also affects the state mailing. For example, if you set postal_delivery to false, Stripe won’t mail the 1099 form to the connected account for state reporting.
File 1099 reports with the states
When you’re ready to file the forms with the states, access the state portals with the account you created and submit the reports you downloaded from the Exports & imports tab. Stripe can’t help with any issues related to the state filing process, but you can contact Stripe support with issues related to the format of the reports.
Some states require you to file 1099 forms through postal mail, or to mail the Pub 1220 state file on a CD or other electronic media. Refer to the tables above to determine each state’s filing requirements.