Copy 1 of a 1099 is the version of the form that goes to the state tax department with jurisdiction over the income being reported. It carries the same payment data as the federal copy, plus a state section showing your state payer ID number, the state income amount, and any state tax you withheld. You file it directly with the state, or you route the information through the IRS Combined Federal/State Filing Program and let the IRS forward it for you.
Copy A goes to the IRS, Copy B and Copy 2 go to the recipient, and Copy C stays in your records. Copy 1 is the state-facing copy, and it exists because states want to verify income earned within their borders against what recipients report on their state returns.
What Copy 1 Contains
Copy 1 mirrors the federal copy on the payment side: recipient name, taxpayer identification number, dollar amounts paid, and any federal tax withheld. The difference sits at the bottom of the form, in the state information section.
On a 1099-NEC, the state fields are Boxes 5 through 7. On a 1099-MISC, they’re Boxes 16 through 18.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) Either way, the state section captures three things:
- State tax withheld, if you withheld any
- The abbreviated state name and your state payer ID number (this is not your federal EIN)
- State income, meaning the portion of the payment attributable to that state
The form has room for up to two states, separated by a dashed line.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) If a recipient’s income touches three or more states, you’ll file additional forms. The IRS itself doesn’t need the state boxes filled in; they exist solely to support state reporting.
Before you can file Copy 1 anywhere, you need to be registered with that state and have a state payer ID number in hand. Without one, the state’s system generally can’t process the filing, and that alone can generate a penalty notice.
Where Copy 1 Goes and When
Copy 1 goes to the state tax department that has jurisdiction over the income, which is usually the state where the recipient performed the work or where the income was sourced. If your business is in Ohio and you paid a contractor who worked entirely in Pennsylvania, Pennsylvania is likely the state that needs Copy 1.
State deadlines generally track the federal schedule. For Form 1099-NEC, the federal due date is January 31 for both Copy A and Copy B, regardless of paper or electronic filing. Most states that require Copy 1 match that date. For Form 1099-MISC, the federal deadline is February 28 on paper or March 31 electronically.2Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) Deadlines falling on a weekend or legal holiday shift to the next business day.
States Where Copy 1 Isn’t Required
Seven states have no individual income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. If the income was earned entirely within one of these states, you generally have no obligation to file Copy 1 there. The IRS instructions describe Copy 1 as used only when “a state tax department requires that you send them a paper copy of this form.”2Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) A state with no income tax has no reason to collect this data.
A few of these states impose other taxes that can involve information reporting in narrow situations, so check directly with the state’s revenue department if anything about the payment is unusual. For most 1099-NEC and 1099-MISC filings, though, Copy 1 simply doesn’t apply in these seven states.
The Combined Federal/State Filing Program
If you file in multiple states, the Combined Federal/State Filing Program (CF/SF) can replace state-by-state submission. You send your 1099 data to the IRS electronically, and the IRS forwards the state-relevant information to participating states.3Internal Revenue Service. Combined Federal/State Filing (CF/SF) Program
Most income-tax states participate, but not all, and the full list is in IRS Publication 1220. Before you rely on CF/SF for a given state, confirm the state is on the list and check whether it wants a separate notification from you. Some participating states ask filers to tell them directly that data is coming through CF/SF rather than as a standalone Copy 1.3Internal Revenue Service. Combined Federal/State Filing (CF/SF) Program
To enroll, you submit an electronic test file coded for the program through the IRS’s FIRE system. If the test file passes, the IRS sends an approval letter. A test file is required only for the first year, though the IRS recommends retesting annually. You’ll also need a Transmitter Control Code from a separate application.3Internal Revenue Service. Combined Federal/State Filing (CF/SF) Program
One limitation matters: the IRS is only a forwarding agent. If a state has questions about your filing, you deal with the state, not the IRS. Some participating states also still want Copy 1 directly when you withheld state income tax, even if the rest of your 1099 data flows through CF/SF. Confirm the specifics with each state’s revenue agency.
Electronic Filing and How Copy 1 Moves
If you file 10 or more information returns in a calendar year, electronic filing is mandatory. The threshold counts all your information returns together, not each form type separately. Seven 1099-NECs plus four 1099-MISCs equals 11, which is over the line.4Internal Revenue Service. Publication 1099 General Instructions for Certain Information Returns
For tax year 2026 filings, the IRS is retiring the FIRE system and moving filers to IRIS, the Information Returns Intake System. FIRE remains available through the 2026 filing season, but existing users should complete their IRIS application. If you genuinely cannot meet the electronic requirement, you can request a waiver on Form 8508 for the current filing year.5Internal Revenue Service. Filing Information Returns Electronically (FIRE)
State electronic thresholds are separate. Some states require electronic submission at 10 forms; others set the bar higher. You may owe electronic filing federally but be allowed to paper-file with a specific state, or the reverse.
Correcting an Error on Copy 1
If the only error is in the state information boxes, do not send a corrected return to the IRS. Contact the state tax department directly. The IRS explicitly instructs that corrected returns for state or local information only should not be filed federally.6Internal Revenue Service. General Instructions for Certain Information Returns (2025) Each state has its own correction procedure and forms, so work through the relevant state revenue department.
When both the federal and state data are wrong, corrections filed through CF/SF are forwarded to participating states the same way originals are.3Internal Revenue Service. Combined Federal/State Filing (CF/SF) Program Either way, correct errors as soon as you find them. A voluntary correction filed before the IRS or the state contacts you about a discrepancy can help establish reasonable cause and reduce penalty exposure.
Penalties for Missing or Late Copy 1
State penalties for late or missing 1099 filings commonly range from $50 to over $300 per form, and they stack on top of federal penalties. Filing Copy 1 late with a state doesn’t excuse a late Copy A with the IRS, and filing Copy A on time doesn’t cover a missing Copy 1. If you’re late across the board, you can face penalties from the IRS and every affected state at once.
For context, federal per-form penalties for returns due in 2026 run $60 up to 30 days late, $130 through August 1, and $340 after August 1 or if never filed, rising to $680 per form for intentional disregard with no cap.7Internal Revenue Service. Information Return Penalties A missing or incorrect TIN counts as an incorrect return, so data-entry mistakes multiply quickly across a batch of forms.