California State Business Tax Extension

Businesses must report their income and expenses to the state of California.


If the businesses need more time to prepare and file state business income tax returns, they can extend the deadline for up to 6 months.


California does not require any additional tax extension form to get a tax extension, an automatic extension of 6 months of time is granted by California state. But if there are any tax dues, it must be paid within the due date using one of these Forms FTB 3539, FTB 3538, FTB 3537, and FTB 3522 - whichever is applicable according to the business type.


Learn More about California State Business Tax Extension


California Information Returns - Form W-2 & 1099

An informational return is a tax document that contains information required to be reported to federal and state authorities. Federal Forms 1098, 1099, 5498 and W-2G are used for certain business transactions.


The state of California does not require that the Form W-2 be filed with the state, but it must be provided for each qualifying employee. Every employer is required to file the Form W-2 for each employee that is paid $600 or more for the year and meets one of the following criteria:

  • Income, social security, or Medicare tax was withheld
  • Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4

The Form 1099 Series consists of the 1099-INT, 1099-MISC & 1099-DIV. This series of forms is used to report various types of “Other Income” not including wages, salaries, and tips.
Form 1099 is typically used when the taxpayer has received income from sources other than a wage-paying job. There are eleven different variations to the 1099 forms, depending on the type of income being reported will determine which form you will need to use. Form 1099 is only required if the payment amount is greater than $600 during the calendar year. In California, business expense deductions for these types of payments may be disallowed, and penalties of $50 for each form that is not filed may be imposed.



Forms Due Dates Notes
Paper Filing E-Filing
1099 INT February 29th March 31st Yearly tax statement provided by payers of interest income that summarizes income of more than $10 from interest along with associated expenses
1099 MISC February 29th March 31st Yearly tax statement to report payments for services performed for a business by people not treated as its employees, such as payments to subcontractors, rent payments or prizes
1099 DIV February 29th March 31st Yearly tax statement provided to investors by banks and other financial institutions to report dividends and other distributions
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Information Returns - IRS Form W-2

Form W-2, Wage and Tax Statement, is used to report wages paid to employees and the taxes withheld from them.

Every employer engaged in a trade or business who pays remuneration for services performed by an employee, including non-cash payments of $600 or more for the year, must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:

  • Income, social security, or Medicare tax was withheld
  • Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4

State Link

https://www.ftb.ca.gov/professionals/taxnews/2007/0407/0407_5.shtml


IRS /SSA LINKS

http://www.socialsecurity.gov/employer/

http://www.irs.gov/pub/irs-pdf/iw2w3.pdf


DUE DATES

The employer must provide each employee with a copy of their completed W-2 form by January 31 of the following year in which the W-2 is in reference to.

The employer is required to file Copy A of all W-2 forms along with a form W-3 with the SSA (Social Security Administration) by the last day of February of the year following the year in which the W-2/W-3 is in reference to if the forms are paper filed. If the forms are e-filed the due date is automatically extended to the last day in March of the year following the year in which the W-2/W-3 is in reference to (for the 2022 tax year the due date will be March 31, 2023 for e-Filing).


Where to file?

There are several ways to file. You can print paper copies and mail them to the SSA and the recipients. You can use Express Tax Filings to e-file the form to the SSA and email it to the recipients.


Instructions for Paper Filing

If you file paper returns with IRS, do not send a paper copy to us. IRS will forward the information to us, whether you are located in or out of the State of California.
If you have an exception that requires you to report something different for federal and state purposes, such as a different dollar amount, file separate returns with IRS and us.
While we encourage you to file electronically, you may file up to 249 paper returns by the due date of February 29. If you file 250 or more returns, you must file electronically. If you must file on a paper return with us, mail it to:

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Form W2c

You submitted your Form W-2 and it was accepted by the IRS, but now you realize you have incorrect information on that form. What do you do? If you filed Form W-2 through ExpressTaxFilings and the return was accepted by the IRS, you can make corrections of that form by going to ‘Submitted Forms’ on the dashboard, choose the correct form and click ‘Make Corrections’ under Options.

You will then select the Payer and the form that needs to be corrected. This will open a Form W-2 C, where you will be able to update the correct information. Correct errors (such as incorrect name, SSN, or amount) on a previously filed Form W-2 or Form W-2c.

If you are correcting only an employee's name and/or SSN, complete Form W-2c boxes d through i. Do not complete boxes 1 through 20. Have your employee correct the SSN and/or name on his or her original Form W-2. If your employee has been given a new social security card following an adjustment to his or her resident status that shows a different name or SSN, file a Form W-2c for the most current year only.

In order to correct an incorrect tax year and/or EIN on a previously submitted Form W-2, enter the tax year and EIN originally reported, and enter in the “Previously reported” boxes the money amounts that were on the original Form W-2. In the “Correct information” boxes, enter zeros. Prepare a second Form W-2C and enter zeros in the “Previously reported” boxes, and enter the correct money amounts in the “Correct information” boxes. Enter the correct tax year and/or correct EIN.

If you filed a Form W-2 with the SSA that reported an incorrect address for the employee, but all other information on the Form W-2 was correct, you will not file Form W-2c with the SSA just to correct the address. But, if the address was incorrect on the Form W-2 you provided to your employee, you must do one of the following:

Issue a corrected Form W-2 to your employee with the new address. Indicate “REISSUED STATEMENT” on the new copies. Do not send Copy A of Form W-2 to the SSA. Issue a Form W-2c to the employee that shows the correct address in box i, and all other correct information. Do not send Copy A of Form W-2c to the SSA. Reissue the Form W-2 that had the incorrect address to the employee in an envelope showing the correct address.




Form W3

Form W-3, Transmittal of Wage and Tax Statements, is a summary page of all W-2 forms issued by the employer. This form includes the total amount for all employees that worked for the employer during the tax year.

Anyone who paper file Form W-2 must file Form W-3 to send with Copy A of Forms W-2 to the SSA. Even if there is only one paper W-2 form being filed a W-3 is still required. Do not file a W-3 for Form(s) W-2 that were submitted electronically to the SSA.

A transmitter or sender may sign Form W-3 (or use their PIN to e-file) for the employer or payer only if the sender is authorized to sign by an agency agreement (whether oral, written, or implied) that is valid under state law; and it reads “For (name of payer)” next to the signature. (This applies to paper filing of Form W-3 only).

To correct a W-3 you can use the current version of Form W-3c to correct errors. Corrections may be made from an error on a previously filed Form W-3 or Form W-3c. You must file Copy A of Form W-3c with the SSA.

Corrections reported on Form W-2c may require you to make corrections to your previously filed employment tax returns using the corresponding “X” form, such as Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund; Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund; Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund; or Form CT-1X, Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund.


Information Returns - IRS Form 1099

A form 1099 is used to report a variety of unique income payment types to the IRS. This form is typically used when the taxpayer has received income from sources other than a wage-paying job. There are several different variations to the 1099 forms themselves. The specific 1099 form is determined depending on the type of income being reported.

The form 1099-MISC is one of the many types of 1099 forms. This form is typically only for payments made in the course of your trade or business. Even non-profit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements.

Form 1099-INT is a yearly tax statement provided by payers of interest income. This 1099 form summarizes income of more than $10 from interest along with associated expenses. The information on Form 1099-INT is provided to both the payee and the IRS.

Form 1099-DIV is a yearly tax statement provided to investors by investment fund companies. This form includes income from dividends including capital gains dividends and exempt-interest dividends over $10. The information on Form 1099-DIV is provided both to the payee and IRS.

California Supports

Electronic Filing of Information Returns

You must use California’s Secure Web Internet File Transfer System (SWIFT) to submit files when filing more than 250 Information Returns electronically.

Follow these steps to submit Information Return data through SWIFT:

  • Important: We only accept .txt and .zip files.
  • Prepare your information returns as you normally would.
  • Provide the recipients with a copy of their Information Return.
  • Transfer the information to an acceptable file format (.txt or .zip) as listed in IRS Pub. 1220.
  • Transmit the file to us via SWIFT.
  • Retrieve your receipt file that tells you we received the file.
  • Important: We only accept .txt and .zip files.
  • Prepare your information returns as you normally would.
  • Provide the recipients with a copy of their Information Return.
  • Transfer the information to an acceptable file format (.txt or .zip) as listed in IRS Pub. 1220.
  • Transmit the file to us via SWIFT.
  • Retrieve your receipt file that tells you we received the file.

IRS Combined Federal/State Filing

If you use the IRS Combined Federal/State Filing Program, you only have to file once. IRS will forward your California returns to us. Only the following forms may be filed under this program:

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Form 1099 MISC

Form 1099-MISC, Miscellaneous Income, is used to report payments for services performed for a business by people not treated as its employees, such as payments to subcontractors, rent payments or prizes.A 1099-MISC form must be provided to the recipient and a copy mailed to or E-Filed with the IRS.


This form is for Miscellaneous Income filed for each person to whom a payer paid during the year:


  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  • At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
  • Any fishing boat proceeds; or
  • Gross proceeds of $600 or more paid to an attorney.

You must also file a form 1099-MISC if direct sales of at least $5,000 of consumer products was sold to a buyer for resale that will be sold anywhere other than a permanent retail establishment.


There are some payments that do not have to be reported on Form 1099-MISC, although they may be taxable to the person receiving the payment. Some of the common exceptions are many payments to corporations, payments made to real estate agents, business travel allowances paid to employees and payments to a tax-exempt organization including tax-exempt trusts.




Form 1099 INT

Form 1099-INT, Interest Income, is a yearly tax statement provided by payers of interest income that summarizes income of more than $10 from interest along with associated expenses.


The information on Form 1099-INT is provided to both the payee and the IRS. Form 1099-INT is used to report interest income for each person:


  • To whom you paid amounts reportable in boxes 1, 3 and 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1. Interest Income).
  • For whom you withheld and paid any foreign tax on interest, or
  • From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.

Report only interest payments made in the course of your trade or business including federal, state, and local government agencies and activities deemed nonprofit, or for which you were a nominee/middleman. Report tax-exempt interest, only on Form 1099-INT.


Payers are not required to file Form 1099-INT for interest on an obligation issued by an individual, interest on amounts from sources outside the United States paid by a non-U.S. payer / non-U.S. middleman, certain portfolio interest, interest on an obligation issued by an international organization and paid by same, payments made to a foreign beneficial owner or foreign payee.




Form 1099 DIV

Form 1099-DIV, is a yearly tax statement provided to investors by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS.


This form includes income from dividends including capital gains dividends and exempt-interest dividends over $10. Any person that you have paid dividends (including capital gain dividends and exempt-interest dividends) and other distributions on stock of $10 or more,

  • For whom you have withheld and paid any foreign tax on dividends and other distributions on stock,
  • For whom you have withheld any federal income tax on dividends under the backup withholding rules, or
  • To whom you have paid $600 or more as part of a liquidation.

There are 2 Exceptions for the 1099-DIV.

  • Taxable dividend distributions from life insurance contracts and employee stock ownership plans are reported on Form 1099-R. This would include Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
  • Substitute payments in lieu of dividends. For payments received by a broker on behalf of a customer in lieu of dividends as a result of a loan of a customer’s securities, see the instructions for box 8 in the 2012 Instructions for Form 1099-MISC.

Qualified dividends are dividends paid during the tax year from domestic corporations and qualified foreign corporations. For individuals, estates, and trusts, qualified dividends are taxed at a maximum rate of 15% (generally, the rate is zero for individuals whose other income is taxed at the 10% or 15% rate).




State Resources




State Information




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Help Videos

How to E-File a Form 1099?

ExpressTaxFilings is a complete tax filing solution for 1099, W-2, and other IRS Information Returns.


Once inside you'll be brought to the dashboard. Here you can see any unsubmitted forms you're still working on and also your completed forms to get started on a new 1099 you can select which 1099 form that you need to file. To begin you will need to enter your payer information by selecting a payer at the top.


To get started, go to ExpressTaxFilings.com and create an account. To save time, you can even login with google or facebook.


Form W-2, Wage and Tax Statement

Every employer engaged in a trade or business who pays remuneration for services performed by an employee, including noncash payments of $600 or more for the year, must file a Form W-2 for each employee from whom:


  • Income, social security, or Medicare tax was withheld.
  • Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W4.




Express Tax Filings

ExpressTaxFilings is a tax E-File software that helps you file and furnish 1099 Forms including 1099-DIV, 1099-MISC, 1099-INT and W-2 Forms to your recipients all in one place. Our IRS authorized E-File system allows you to file your forms quickly and easily. We are a secured web based service so your 1099 forms and W-2 forms will be available to you at any time from any location. As experienced tax professionals within the industry you can rest assured your Form 1099-DIV and other forms will be E-Filed quickly and simply.


ExpressTaxFilings is a part of the ExpressTaxZone line of IRS Authorized products which also includes Express Extension for E-Filing of Form 7004, Form 4868, Form 8868, ExpressTruckTax for E-Filing of Form 2290, Form 2290 Amendments, Form 8849, Schedule 6 and ExpressIFTA for state IFTA report generation. With Express TaxFilings you can E-File Form 1099-DIV, Form 1099-MISC, Form 1099-INT and Form W-2.



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