Alabama businesses must file 1099 information returns with the Department of Revenue when state income tax is withheld. 1099Online handles both federal and state filings - including Form A-3 - in a single, secure submission.
Alabama OBBBA conformity varies by provision under the Code of Alabama 1975. ALDOR has issued preliminary guidance on how selected OBBBA changes apply to Alabama individuals, corporations, and financial institutions.
Alabama conforms to several OBBBA corporate tax provisions, including the corporate charitable contribution limitation and domestic research and experimental expense rules, while requiring Alabama-specific addbacks for certain R&E amounts on a prior state level return. Alabama also maintains rolling conformity for certain federal corporate and individual income tax provisions.
The Alabama Department of Revenue (ALDOR) requires applicable tax forms and returns to be filed, especially when Alabama income tax was withheld
Non-employment compensation paid to contractors and freelancers
Miscellaneous payments like rent, prizes, and others
Payments made via card and third-party network
Interest income paid by financial institutions
Dividends and distributions paid to shareholders
Distributions from pensions, annuities, and retirement plans
Proceeds from brokers and barter exchange transactions
Unemployment compensation and certain government payments
Original Issue Discount
Gambling Winnings
Alabama's filing deadlines vary depending on whether state income tax was withheld. When no tax is withheld, the IRS Combined Federal/State Filing program forwards applicable forms to Alabama automatically.
| Form type | State Income Threshold | Filing method | Due date |
|---|---|---|---|
| 1099-NEC, MISC, INT, DIV, K, B, R, G | More than $0 | Direct State Filing | February 1, 2027 |
| 1099-NEC, MISC, INT, DIV, B, R, G, OID | $1500 or More | CF/SF Program (IRS forwards) | March 15, 2027 |
| 1099-K | $20,000 or more plus 200 transactions | CF/SF + Direct State Required | April 30, 2027 or within 30 days after the IRS filing due date |
| W-2G | More than $0 | Direct State Filing | February 1, 2027 |
If the federal due date falls on a weekend or holiday, the due date will be the next business day to allow for the full 30 days.
Form 1099-K has an additional requirement which requires filers to submit copies of federal Form 1099-K to ALDOR within 30 days of the federal filing deadline.
Alabama participates in the IRS Combined Federal/State Filing (CF/SF) program for most 1099 types. The filing method depends on whether Alabama state income tax was withheld. If state income tax was withheld, the 1099 must be filed directly with the state portal, My Alabama Taxes, along with Form A-3.
| Form | CF/SF Participation | Direct State Filing Required? |
|---|---|---|
| 1099-NEC, MISC, INT, DIV, B, R, G | Yes, if no tax withheld | Yes, if state tax withheld |
| 1099-K | Yes, but direct filing is also mandatory | Yes, filers must submit a duplicate copy of federally filed Forms 1099-K directly to ALDOR |
| W-2G | Not applicable | Yes, when Alabama income tax is withheld or Alabama requires state reporting for gambling winnings |
eFiling for these 1099 forms is only mandatory if you have 10 or more returns to file.
Form A-3, the Annual Reconciliation of Income Tax Withheld, must be filed by payers who withhold Alabama state income tax. Forms 1099 with Alabama income tax withheld must be submitted along with Form A-3.
Summarizes Alabama income tax withheld during the year from 1099 payments and reconciles deposits with the annual total.
Required if Alabama tax was withheld on any 1099 form. It must be filed by February 1, 2027. If tax was withheld from a non-wage payment, a copy of the Form 1099 used to report that payment must be submitted along with Form A-3.
Overpayments under $100 are issued as a credit. Overpayments of $100 or more can be requested as a refund or applied as a credit.
1099Online automatically generates and files Form A-3 for 1099s with Alabama withholding at no extra cost.
Alabama resident payers engaged in a trade or business that makes nonwage payments of $1,500 or more must issue Form 1099. A copy must also be filed with ALDOR.
This filing requirement applies to businesses of all sizes, from sole proprietors to large enterprises.
The following details are needed for Alabama state filing on each 1099 form:
The payer's Alabama Withholding Tax Account Number. Accepted formats include a 10-digit numeric number (e.g., 0000123456) or the letter "R" followed by 9 digits (e.g., R007999999).
The total amount of taxable income is subject to Alabama state income tax.
The total amount of Alabama state income tax withheld from the recipient's income.
1099Online supports state filing for all U.S. states and territories. Select a state to view
its specific 1099 filing requirements, deadlines, and forms.
Common questions about Alabama 1099 filing requirements, deadlines, and
reconciliation.
Yes. Alabama generally requires 1099 filing when payments meet or exceed $1,500, even if no state tax was withheld. These forms can be submitted through the CF/SF program by March 15.
Form A-3 is Alabama's annual withholding reconciliation form. It is required for payers who withheld Alabama state income tax from 1099 payments during the year.
Any individual who is late at filing Form 1099 in Alabama may be subject to a penalty equal to the greater of 10% of the additional tax required to be paid with the return or $50 set forth in §40-2A-11, Code of Ala. 1975.
Yes. 1099Online supports corrected 1099 filings for both federal and Alabama state submissions. From entering payer information to filing Form A-3, 1099Online helps you manage Alabama state filing and federal filing in a single workflow.
Start free - import your data, validate TINs, and submit to both the IRS and Alabama in minutes. Pay only when you file.