Does Kentucky Require Filing of 1099?

Taxpayers are issued 1099 statements for reporting various forms of taxable income on federal and state income tax returns. Although all 1099 tax forms must be filed with the Internal Revenue Service, income-tax reporting guidelines for state taxes differ from state to state. Taxpayers living in Kentucky must file 1099s that report miscellaneous income or retirement; filing 1099 forms for stock dividends and interest is not required.

Required 1099s

Kentucky requires state taxpayers to file all applicable 1099-MISC and 1099-R forms with their state income taxes. 1099-MISC tax forms are issued to self-employed taxpayers who are employed as independent contractors, such as freelance writers or graphic designers, rather than full-time employees. 1099-R forms are mailed to indicate tax withholdings from retirement income, including pension distributions and annuities.

Other 1099s

Kentucky does not require taxpayers residing in the state to file 1099-INT, 1099-DIV or 1099-S forms, which are applicable for federal tax returns. 1099-INT forms report taxable income earned through interest on investment. 1099-DIV forms are sent to taxpayers who have received dividend income through stocks or other securities. 1099-S forms indicate tax withholdings on income earned through real-estate transactions.

Filing Forms

Kentucky’s Department of Revenue processes electronic tax filing on 1099 tax forms and other related tax documents within seven to 10 days after the application is received electronically. The state revenue department offers a Kentucky Free File digital filing program available through the department’s website. Depending on your 1099 income, you may be required to attach additional supporting schedules and worksheets with the general income tax filing; you may also be required file 1099 forms for work in other states, if you claim a tax credit on taxes paid in other states.

Considerations

Kentucky’s Department of Revenue issues 1099-G forms to taxpayers who have received a state tax refund the previous year; this is considered to be taxable income to be reported on the following year’s federal income tax return. Kentucky’s electronic tax filing system allows a taxpayer to choose if he would like to receive the tax refund as a direct deposit. Companies in Kentucky issuing 1099 forms for federal tax purposes do not need to file a copy of that form with the Kentucky Department of Revenue.