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Colorado 1099 State Filing Requirements for 2026 TY

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Colorado OBBBA Conformity

Colorado is a rolling Internal Revenue Code (IRC) conformity state. This means any updates to the federal IRC automatically flow into the Colorado tax law, unless the state legislature disassociates from specific provisions.

With OBBBA, Colorado made targeted adjustments that affected some income tax calculations. The state’s 1099 filing requirements, withholding thresholds, and Form DR 1106 requirements remain unchanged from prior tax years.

1099 Forms Required by Colorado State

Colorado requires payers to submit 1099 statements that report Colorado income tax withholding. If there is no Colorado withholding, direct submission to CDOR is not required. Instead, those are handled through the IRS Combined Federal/State Filing (CF/SF) program.

Form 1099-NEC

Nonemployee Compensation

1099-MISC

Miscellaneous Information

1099-K

Payment Card & Third Party Network Transactions

1099-INT

Taxable Interest Income

1099-DIV

Dividends and Distributions

1099-B

Proceeds From Broker and Barter Exchange Transactions

1099-R

Retirement Distributions

1099-G

Certain Government Payments

1099-OID

Original Issue Discount

W-2G

Gambling Winnings

DR 1106

Annual Transmittal of State 1099 Forms

Colorado Filing Methods: Direct vs. CF/SF

As a participant of the IRS Combined Federal/State Filing (CF/SF) program, Colorado automatically receives qualifying 1099 information from the IRS. Direct filing with the CDOR is required only when a 1099 form reports Colorado income tax withholding. In those cases, payers must also file Form DR 1106, the Annual Transmittal of State 1099 forms.

Form CF/SF Participation Direct State Filing Required? Electronic Threshold
1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-OID, 1099-B, 1099-G, 1099-K, 1099-R Yes, if no CO withholding Yes, if Colorado tax is withheld 10 or more recipients
W-2G Not handled via CF/SF Yes, if CO gaming withholding applies 10 or more recipients

Colorado 1099 Filing Deadlines for Tax Year 2026

Colorado 1099 statements that report state income tax withholding (along with Form DR 1106) are due by January 31, or 30 days after business closure. Should January 31 fall on a weekend or a federal holiday, the deadline shifts to the next business day. For tax year 2026,, the due date is February 1, 2027.

Form type Withholding Condition State Income Threshold Filing Method Due Date
1099-NEC, MISC, R, INT, DIV, B, G, K, other 1099s Colorado tax withheld More than $0 Direct State Filing with Form DR 1106 February 1, 2027
1099-NEC, MISC, R, INT, DIV, B, G, K, other 1099s No Colorado tax withheld Equal to or more than the federal threshold CF/SF Program (IRS forwards to CDOR)
W-2G Colorado gaming withholding reported More than $0 Direct State Filing with Form DR 1101
W-2G No Colorado withholding reported Equal to or more than the federal threshold Direct State Filing

Colorado Form DR 1106: Annual Transmittal of State 1099 Forms

If the 1099 statements contain Colorado income tax withholding, the payers are required to also file Form DR 1106 with the Colorado Department of Revenue.

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What is Form DR 1106 and what does it report?

Form DR 1106 is the annual reconciliation and transmittal form that reconciles Colorado income tax withheld on 1099 forms against withholding payments remitted to the CDOR during the tax year.

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When is Form DR 1106 required?

Form DR 1106 is required when filing 1099 statements with Colorado income tax withholding.

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When is Form DR 1106 due?

Form DR 1106 is usually due by January 31. For 2026 payments that have to be reported in 2027, the deadline is February 1, 2027.

Who Needs to File 1099 Forms in Colorado?

Regardless of the size or number of recipients, any payer reporting Colorado income tax withholding on a federal Form 1099 must file those statements directly with the CDOR.

This can include payers such as:

  • Businesses that withhold Colorado income tax or other 1099-reportable payments
  • Brokerage firms and financial institutions
  • Pension and retirement plan administrators
  • Government agencies issuing taxable government payments
  • Government agencies
  • Property managers and real estate firms

Information Required to File 1099 Forms with Colorado

In order to file Colorado 1099 forms, you’d need accurate details, such as:

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Colorado Account Number (CAN)

Use the CAN assigned to the payer withholding account. Do not use the federal EIN as the Colorado Account Number.

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Payer Information

Legal business name, address, and federal employer identification number (FEIN).

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Recipient Details

Recipient name, address, taxpayer identification number (TIN), and payment information reported on the applicable Form 1099.

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Colorado reportable income or payment amount

Income amounts reportable to Colorado for state filing purposes.

Colorado Tax Withheld

Total Colorado income tax withheld from reportable payments.

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FAQs on Colorado 1099 Forms Filing

You are not required to file 1099 forms with CDOR if there is no Colorado income tax withholding. The IRS forwards such forms to the CDOR through the CF/SF program. However, if there is Colorado state withholding in your federal 1099, you will need to file separately with CDOR.

Form DR 1106 is Colorado’s Annual Transmittal of State 1099 Forms. It is used to report and reconcile the total Colorado income tax withheld on all federal 1099 payments during the year with the withholding tax deposits already remitted to the CDOR. It is generally required when reporting Colorado withholding on Forms 1099. Form DR 1106, a transmittal form, is required for paper filing. For eFiling, Form DR 1106 is required only when the reconciliation shows a balance due or refund.

The Colorado 1099 filing deadline is the last day of January. However, since January 31 falls on a weekend, the due date moves to the next business day, February 1, 2027.

Late payment penalties for Colorado 1099 withholding filings are the greater of $5 or 5% of the unpaid tax, plus 0.5% for each full or partial month the tax remains unpaid, up to 12% of the. Federal and Colorado penalties are assessed separately and are cumulative.

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