As an individual citizen, which tax agencies receive your 1099's?
I've heard that statements of interest income are sent to the IRS by brokerage/financial institutions. Do resident states (the state that I live in) also receive copies of your 1099's?
If you have a CD or savings/money market account in a normal bank, do they report your interest income to your resident state and/or the IRS?
Does the amount of interest you made during a calendar year effect any of this?
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I'm going to have to file a 1099 for someone that I'm paying money to this year so I was just reading the instructions, and they say that I am supposed to send one copy to the taxpayer, one copy to the IRS, and one copy to the state tax agency. It may be that some states require it and others don't, I haven't investigated that.
I see some of the commenters assume that you're asking this because you want to not report your 1099 income to the state. If this is what you're thinking, I can only say: Don't. Even if the state doesn't get a copy of your 1099, they communicate with the feds. The information is available to them. They'll track you down sooner or later and then you'll be facing penalties and interest and possible criminal prosecution.
If that's not what you were thinking at all, my apologies for impugning your motives. :-)
Some states do indeed require payers to send a copy of 1099 forms to the state tax agencies. It is entirely dependent on the laws of each state.
However, for many people it doesn’t matter, because when you send in your state taxes many states require that you include a copy of your federal return, so your 1099 income would be included on that for your state to see.
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