Key figures
Rhode Island payables
2026, with sources
Every 1099 over $100
Rhode Island changed its information-return rule for tax year 2025. Previously the Division of Taxation only wanted a Form 1099 when Rhode Island tax had been withheld. Now, citing R.I. Gen. Laws § 44-30-58(c), it requires the filing of every 1099 reporting more than $100, of every type, regardless of withholding. The Division says the information helps it detect fraud and identity theft.
The threshold is lower than the federal one, so a startup that paid a Rhode Island freelancer $450 for a logo has a Rhode Island filing even where the federal rules would not require a 1099-NEC. Files are uploaded through the Tax Portal in the IRS FIRE text or IRIS XML format, the same files used for the IRS.
Use tax on software
Since October 1, 2018, Rhode Island has taxed vendor-hosted prewritten software (SaaS) at 7%, and the Division’s rulings extend that to infrastructure and platform services when there is a charge to a Rhode Island customer. When an out-of-state vendor doesn’t collect it, a Rhode Island business owes use tax on the subscription.
A 20-person company in Providence paying $120,000 a year for tools that don’t charge Rhode Island tax owes $8,400 a year in use tax. It is the kind of liability that accumulates quietly until an audit.
Uncashed checks
Vendor checks that go uncashed and customer credits that are never used are reported to the General Treasurer as unclaimed property in the report due before November 1, as of June 30.
Deadlines
- Jan 31Upload to the RI Tax Portal (FIRE or IRIS format)Forms 1099
The federal baseline
This page covers what Rhode Island adds. The federal rules underneath it apply here too.
Common questions
Do we file 1099-NECs with Rhode Island?
Yes, from tax year 2025. The Division of Taxation now requires Form 1099 for all payments of $100 or more, citing R.I. Gen. Laws § 44-30-58(c), regardless of Rhode Island withholding. That covers 1099-NEC, 1099-MISC, 1099-INT and the rest. Before 2025 it only wanted forms showing Rhode Island withholding.
How are Rhode Island 1099s filed?
Through the Tax Portal: a taxpayer with an active withholding account uploads a FIRE text or IRIS XML file under “File Informational Documents,” a tax professional can upload for delegated clients, and payroll providers can register as bulk filers.
Payables next door
- CTConnecticut payablesConnecticut wants its own copy of every 1099-NEC for Connecticut work by January 31. Software bought for business use owes 1% use tax when the vendor doesn’t charge it.
- MAMassachusetts payablesMassachusetts wants 1099s filed directly with DOR, applies a strict ABC test to contractors, and taxes the SaaS a startup buys at 6.25% when the vendor doesn’t collect.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- The closeWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
More of the Rhode Island guide
- AccountingAccounting and state tax in Rhode IslandCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in Rhode IslandSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in Rhode IslandWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in Rhode IslandRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in Rhode IslandCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.