The IRS is not supporting the transmission of the 1099-NEC forms to the states in the Combined Federal/State Filing Program for the 2020 tax year.
1099-NECs with Alabama tax withheld should be submitted with the A-3 Annual Reconciliation of Alabama Income Tax Withheld by January 31, 2021.
1099-NECs without Alabama tax withheld may be submitted via paper by March 15, 2021 to:
Alabama Department of Revenue
P.O. Box 327489
Montgomery, AL 36132-7489
The 1099-NEC forms cannot be transmitted via the Combined Federal/State program for the 2020 filing year. However, for the 2021 filing year and forward, the 1099-NEC can be transmitted via the Combined Federal/State program.
For those 1099-NECs with Alabama tax withheld, submit with your A3 Annual Reconciliation. Income would go in the “Other Income” column, not AL wages.
For those without Alabama tax withheld, please submit via paper by March 15 to:
Alabama Department of Revenue
P.O. Box 327489
Montgomery, AL 36132-7489
The Alabama Department of Revenue offers a FREE electronic service, My Alabama Taxes (MAT), for filing and remitting withholding tax. MAT is an online filing system developed to allow taxpayers to file and pay their withholding tax electronically.
If you are unable to access your account via the Internet, please contact the Department at (334) 242-1300. In order to access your account via My Alabama Taxes (MAT), you will need your withholding tax account number and Sign On ID and Access Code provided by the Department to sign up in MAT.
Yes, if your business entity type changed, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application.
Please view your account online through My Alabama Taxes (MAT) to verify receipt of payment. Since checks take longer to process the Department encourages employers to electronically file and pay. Payments of $750 or more are required to be filed and paid electronically.
Contact the Withholding Tax Section at (334) 242-1300 or your local Taxpayer Service Center. Please include the following information: employer’s name, address, phone number and number of employees.
If your federal identification number changes, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application available online.
The State of Alabama recognizes the following Federal Code Sections: Section 125 Cafeteria Plan, Section 401K, and Section 403B. For information on other exclusion from gross income, please see page 2 of the Withholding Tax Tables and Instructions for Employers.
