Direct-to-State filing allows customers to file their 1099-NEC, 1099-MISC and W-2 forms with individual states.
The IRS will share 1099 information with the State if the State participates in the Combined Federal State Filing Program. Here is a list of the States that participate in the program:
Combined Federal State Filing Program (CFSFP)
Through the CFSFP, the IRS/MCC will forward original information returns, filed electronically to participating states for approved filers.
CFSFP Quick Facts
The following forms are included in CFSFP: 1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR, R. 5498
The following states are currently participants: AL, AZ, AR, CA, CO, CT, DE, GA, HI, ID, IN, KS, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NJ, NM, NC, ND, OH, OK, SC, WI as detailed in IRS Publication 1220.
Combined Federal State Filing Program (CFSFP)
Not all states participate in this program such as tax free states like Nevada, Florida, Washington, Wyoming. If you have questions regarding state filings we suggest that you talk with your Accountant or Attorney for further clarification.
Direct to State Filing Supported (Use below support article link for details)
State ID # and validations
The software offers direct to state filing (File Direct) for a select few states. Our service participates in Direct-to-State filing for an optional fee of $1.00 per state. The following states are supported: AR, DC, DE, GA, IL, KS, LA, MI, MN, MS, NC, ND, OR, RI, SC, UT, VA, VT, WI
You can also reference W2 screen within the software to view Supported States.
If your getting an error message "Please enter a valid Payer's State Number", you are not entering in the correct format for your State.
You can find the correct State ID on any letter from your state or contact your state for this information.
You may also see information regarding how to Enter State ID in the Software by using the Support article link below:
https://support.custsupp.com/hc/en-us/articles/360043086493-How-to-Enter-State-ID-