The Maryland Comptroller’s Office recently published updated electronic reporting specifications for W-2 and 1099 reports. These specifications and instructions are used by taxpayers to format and file information returns electronically.
While the specifications remain largely the same as tax year 2019 for both types of information returns, there were minor updates made to each publication surrounding instructions relating to filing. Generally, reminders to label magnetic media and provide contact information for magnetic media were reinforced, and certain formats (flash drives and image files) were newly restricted. More specifically, the highlight deals with 1099 reporting: the 1099-NEC will be required for tax year 2020 reporting, with Maryland requiring any 1099-NEC record that reports state withholding greater than zero.