Do I need to send 1099 misc to VA state dept

[nannypaws4u]

I own a small business in VA, I use independent contractors. I have done their 1099-misc, do I need to send them to VA state dept?

[MinhT · Accepted solution]

You are required to send the forms 1099-MISC together with form 1096 to the IRS by January 31, 2018 at the following address:

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301

You are only required to file Forms 1099 with the Virginia Department of Taxation if the forms show Virginia income tax withheld.

[guhjie]

Can someone please clarify "if the forms show Virginia income tax withheld".  I see this answer on multiple sites but I really have no idea what that means.

I had a project and I paid freelances to complete this project which I personally made 0$ on so ALL of the invoice amount went to either material expenses and freelancers.  Does this count as income withholdings?

Also, do I have to send them state specific 1099 forms depending on if their state requires them to file?

[SteveH7]

As I understand it... "Virginia income tax withheld" means you took out taxes to pay to the State of Virginia (Virginia State taxes). If taxes were taken out to be paid to the State of Virginia, then you must file the form 1099-MISC or 1099-NEC with Virginia. I don't believe this is a special form; it is one of the page sets found in the 1099-MISC / NEC that you send to the State. I would send the State copy of the form to the contractor as well (whether you took out Virginia income tax or not).

[Critter-3]

If you withheld VA taxes then you also needed to remit them to VA ... I doubt you did either so the form doesn't need to be filed with VA  but sending the contractors the state form as well as the fed form is not a bad practice.