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State 1099 Filing & the Combined Federal/State (CF/SF) Program (2026)

By Marcus CaldwellFiled 2026-07-07

Federal 1099 filing is only half the job. Depending on where your contractors live and whether you withheld state tax, you may also owe a state filing — and the rules vary state by state, which is why this is the step most filers get wrong. The IRS's Combined Federal/State Filing (CF/SF) program simplifies part of it by forwarding your data automatically, but it doesn't cover everyone. Here's how the state layer actually works.

Federal filing does not automatically satisfy the state

Transmitting to the IRS covers your federal obligation only. Whether the state is also covered depends on the CF/SF program, the form type, and whether you withheld state tax. Never assume the state is handled just because the IRS accepted your return.

The three buckets every state falls into#

For 1099 purposes, states sort into three groups:

  1. CF/SF states — participate in the IRS program, so accepted federal data is forwarded to them automatically (for supported forms).
  2. Direct-state filers — run their own information-return system and require you to submit 1099 data directly, regardless of your federal filing.
  3. No-filing states — states with no income tax that generally require no 1099 filing at all.

The catch: some CF/SF states still require a direct filing in certain cases (most commonly when state tax was withheld). So CF/SF reduces work but rarely eliminates the state question entirely.

How the CF/SF program works#

When you e-file a 1099 that supports CF/SF and flag it for the program, the IRS shares the accepted data with the recipient's participating state. You file once, federally, and the state receives its copy through the IRS. It's genuinely convenient — but it comes with three limits worth memorizing:

  • It covers participating states only.
  • It covers specific form types (many common 1099s, but not everything).
  • It generally does not cover cases where you withheld state income tax, because the state needs that withholding reconciled directly.

Withholding is the usual tripwire

The single most common reason a CF/SF state still wants a direct filing is state income tax withholding. If you withheld any state tax on a 1099, assume a direct state filing may be required and confirm with that state's department of revenue.

Direct-state filers: file with the state yourself#

Several states don't participate in CF/SF and run their own portals, requiring you to submit 1099 data directly to the state — sometimes on a different schedule and format than the federal filing. Because the exact list of direct-state filers and their thresholds change year to year, treat any published list (including this one) as a starting point and verify each state's current rule with its revenue department before filing.

A practical state-compliance checklist#

For each state where your contractors or recipients are located:

  1. Identify the state for each recipient (their address on the W-9).
  2. Check participation — is it a CF/SF state, a direct-state filer, or a no-filing state this year?
  3. Check withholding — did you withhold state income tax? If so, a direct filing is likely required even in a CF/SF state.
  4. Note the state deadline, which may differ from the federal one.
  5. File and keep proof for both the federal and any state submission.

E-file everything — federal and state — in one place#

Managing CF/SF flags, direct-state filings, and state deadlines by hand is exactly where errors creep in. A capable e-file service tracks which states participate, applies the CF/SF flag automatically for supported forms, and generates the direct-state filings you still owe — so you handle the whole map from one workflow.

Tax1099 handles both sides of the state question. It participates in the Combined Federal/State Filing program for supported forms and generates direct-state filings for states that require them, so a single dashboard covers federal transmission, CF/SF forwarding, and the separate state submissions you'd otherwise track manually. It's IRS-authorized, imports from QuickBooks and Xero, runs TIN matching, and delivers recipient copies — meaning your whole federal-plus-state obligation runs through one per-form workflow. If you're starting from the federal side, our 1099-NEC e-file walkthrough covers that first.

Bottom line#

Sort every recipient's state into CF/SF, direct-state, or no-filing, then check for state withholding, which often forces a direct filing even in CF/SF states. Because participation shifts yearly, verify with each state — and let a service like Tax1099 apply the CF/SF flag and generate the direct-state returns so the state layer never becomes the thing that trips you up.

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Q & A

Frequently asked questions

What is the Combined Federal/State Filing (CF/SF) program?
CF/SF is an IRS program that forwards accepted federal information-return data to participating states automatically. When you e-file a 1099 that supports CF/SF and flag it for the program, the IRS shares that data with the recipient's state, so you don't file separately with that state for those forms. It only covers participating states and specific form types.
Does the CF/SF program mean I never have to file with my state directly?
No. CF/SF only covers participating states, and even some participating states still require a separate direct filing when state tax was withheld or when they need data CF/SF doesn't forward. States that don't participate at all — the 'direct-state' filers — require you to submit 1099 data to the state's own system regardless of your federal filing.
Which states require direct 1099 filing?
The list changes, but several states run their own information-return systems and require direct submission — and a handful of states with no income tax require no 1099 filing at all. Because participation and withholding rules shift year to year, confirm each state's current requirement with that state's department of revenue before you rely on CF/SF.
Do I still file with the state if I withheld state income tax?
Usually yes. State income tax withholding is the most common reason a state requires a direct filing even when it participates in CF/SF, because the state needs the withholding detail reconciled to its own records. If you withheld state tax on any 1099, assume a direct state filing may be required and verify with that state.

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