Alabama 1099 filing requirements (2026)

Alabama requires businesses to file Form 1099-NEC with the state, using its own $1,500 threshold, which is lower than the federal $2,000 threshold for 2026 payments. The state due date is March 15 (no Alabama tax withheld); January 31 with Form A-3 if Alabama tax was voluntarily withheld.

Ala. Admin. Code r. 810-3-26-.01(1): 'All resident payers engaged in a trade or business and making nonwage payments of fifteen hundred dollars ($1,500) or more within a calendar year to any person (whether a resident or nonresident) are required to issue an information return (Federal Form 1099) to the payee and file a copy of such return with the Department.' Code of Ala. 1975 s. 40-18-26 uses the same $1,500 figure. ALDOR's Withholding Tax Tables and Instructions booklet (revised Jan 2026) still states the $1,500 threshold. No ALDOR guidance found adopting the federal $2,000 (OBBBA) threshold for 2026 payments, so Alabama's own $1,500 threshold appears to continue; payments of $1,500-$1,999 in 2026 may be reportable to Alabama even though no federal 1099-NEC is required (and therefore would not flow through CF/SF).

Alabama participates in the IRS Combined Federal/State Filing (CF/SF) program. Direct filing with the state is still required.

1099s reporting Alabama income tax voluntarily withheld must be filed with Form A-3 (Annual Reconciliation of Alabama Income Tax Withheld) by January 31 through My Alabama Taxes (electronic filing required for 10+ W-2s or if you filed/paid electronically during the year). Payers who voluntarily withhold Alabama tax may NOT use CF/SF for those returns (r. 810-3-26-.01(3)(a)). Penalty of $50 per information return not timely submitted.

March 15 (no Alabama tax withheld); January 31 with Form A-3 if Alabama tax was voluntarily withheld. Federal Form 1099-NEC for 2026 payments is due by February 1, 2027.