Kentucky’s 1099 Filing Requirements
Navigate Kentucky's specific 1099 reporting duties. This guide details the state-level process that supplements your federal filing obligations.
Form 1099 is an information return used to report income paid to individuals who are not employees. For businesses and individuals operating in Kentucky, understanding the state-specific obligations for filing these forms is a component of annual tax compliance.
Who Must File 1099s in Kentucky
A business or individual in Kentucky must file 1099 forms if they have made certain types of payments to a person or an unincorporated entity. The primary trigger for this requirement aligns with federal standards, which mandate reporting for payments of $600 or more for services rendered in a calendar year.
The most frequent payment type is nonemployee compensation, reported on Form 1099-NEC for payments to independent contractors. Another common category is rent payments, which are reported on Form 1099-MISC. Payments made to an attorney, regardless of whether the attorney’s practice is incorporated, must also be reported.
Filing Form 1099 with the Kentucky Department of Revenue is only required when Kentucky income tax has been withheld from the payments. This reporting ensures the Kentucky Department of Revenue can verify that recipients are reporting their income correctly.
Information and Forms Required for Filing
For the payer, this includes the business’s legal name, mailing address, and Federal Employer Identification Number (FEIN). This information must be consistent across all tax documents to avoid processing delays or errors.
For each recipient, the payer must collect their full legal name, current mailing address, and a valid Taxpayer Identification Number (TIN). A TIN can be a Social Security Number (SSN) for an individual or an FEIN for a business entity.
The most reliable method for gathering this recipient data is by requesting that each vendor complete and return a Form W-9, Request for Taxpayer Identification Number and Certification. This IRS form officially documents the recipient’s information and their tax status.
Once all federal 1099s are prepared, filers who withheld Kentucky income tax must also use Form K-5, Employer’s Report of Withholding Tax Statements. This form serves as a summary of the income reported and state tax withheld and is used in the electronic filing process.
How to Submit 1099s to the State of Kentucky
Kentucky requires all withholding statements, including Form 1099, to be filed electronically. The Department of Revenue no longer accepts paper copies of these forms, and any received by mail will not be processed. For those submitting 25 or fewer withholding statements, the summary Form K-5 can be filed online through the state’s MyTaxes portal.
The annual filing deadline is January 31. Since filing is electronic, filers will receive a confirmation once the submission is successfully processed.
Federal and Recipient Filing Obligations
Filing with the Kentucky Department of Revenue is only one part of 1099 compliance. Payers also have obligations to file with the Internal Revenue Service (IRS) and to furnish copies to recipients.
The first obligation is filing the same 1099 forms with the IRS. The deadline for this federal filing is also January 31 for most forms, including the 1099-NEC.
The second obligation is to furnish a copy of the completed Form 1099 to each recipient by the January 31 deadline. This allows the recipient to have an accurate record of their reported income for preparing their own federal and state income tax returns.