QuickBooks 1099 Year End Reminders
QuickBooks® Desktop software editions have a different process of printing the QuickBooks® 1099 MISC Year-End tax forms than the QuickBooks® Online edition (Plus).
Accordingly, bookkeepers, accountants, and business owners will find this article appropriate for preparing the QuickBooks® 1099 tax forms in the desktop editions. However, you can apply the following 1099 Year-End tax planning and to-dos to both desktop and online editions.
Who should receive a QuickBooks® 1099 tax form?
You will need to print and file with the IRS a 1099 MISC tax form for every unincorporated vendor you have paid more than $600 in cash and checks for either rents or attorney fees. For services, the IRS has created a new form – 1099 NEC tax form. Be sure you place your order for the correct 1099 tax form to meet your business needs. Any questions, call +1-888-300-3913.
Terms you need to understand
To enumerate the 3 conditions needed to send a 1099 MISC tax form (entity type, payment method and amount, what was purchased) read on:
These entities are NOT CORPORATIONS:
Business entities that operate as a partnership, LLP, LTD, limited liability company, LLC, & Co., and/or a sole proprietor/individual. If your vendor operates as one of these entities you may need to send a 1099 MISC tax form. Businesses do not need to send a 1099 MISC tax form to a corporation. Furthermore, payments to a corporation should include the corporation’s full legal name on the check. Corporations have corporate descriptor as a suffix. For example, typical corporation names end with a Corp, Inc, PC,.There is one common exception that excludes corporations from receiving a 1099 MISC tax form.
If you make payments in excess of $600 to Attorney’s/Lawyers, you must send them a 1099 MISC tax form even if they are incorporated.
QuickBooks will only print 1099s for Vendor names, so avoid using the “other name” name type for payments that may need to be included in a 1099.
More than $600:
- In Cash and checks: Only your cash and check payments will be included in a 1099 MISC tax form. You should NOT include Credit and debit card payments. Credit and debit card merchant processors will send a 1099 MISC tax form to your vendor for these types of payments.
- At this point, make sure QuickBooks® software is excluding all debit card payments by using the transaction type of “check” and entering the correct code in the reference field. QuickBooks® recognizes these codes to signify debit card payments: Debit, Debitcar, DBT, DBT card, DCard, Visa, Mastercard, MC, MCard, Chase, Discover, Diners, PayPal.
- Keep in mind that all journal entries regardless of reference number posted to a chart of account containing 1099 payments will appear on the 1099 MISC tax form. Avoid using Journal entries to post debit card payments from your checking account
- Moreover, all transactions entered on the credit card transaction type will be excluded from the 1099 MISC tax form.
Rents or Services:
- Rents: Payments for rents for office space including amounts paid to you for home office space, storage space, and machine rental require a 1099 MISC tax form to be sent. Use 1099 MISC tax form.
- Services – typical services (but not an all-inclusive list): Independent contractors, subcontractors, commissions, consultants, cleaning services, repair services professional fees including attorneys and accountants, referral fees, entertainers, and temporary help. Use 1099 NEC tax form.
November & December QuickBooks® 1099 Year End Tasks
A. Select those accounts within the chart of accounts that could possibly contain payments to 1099 vendors
Verify that you have correctly coded your current year vendor payments, so they will be included in the QuickBooks® 1099 MISC tax form by taking the following steps:
Review your 1099 mapping. Determine if any accounts in your chart of accounts will ever contain QuickBooks® 1099 vendor payments.
Edit menu > preferences >Tax:1099 Preferences > Company preferences > click on the “click here to map your accounts”
Next, for those identified accounts within the chart of accounts that may include a payment made to a QuickBooks® 1099 vendor make sure the account is mapped to the correct box on 1099 Misc tax form:
Select box 7 for payments made from QuickBooks® software for services or
Select box 1 for payments made from QuickBooks® software for Rents.
If you would like help with this process, give us a call at 800-216-0763 and find out about our pay per call for QBALANCE support for your QuickBooks® software.
B. Verify that your UNINCORPORATED vendors are marked correctly in QuickBooks® software.
- At this point, run the default QuickBooks® 1099 report and print this report to paper as follows:
Reports menu > vendors > 1099 summary> change the date range to this year-end and print.
You will print the 1099 Misc tax forms and the 1096 transmittal form from QuickBooks® software for all vendors displayed on this report.
- Next, modify this same report > by changing the 1099 Options on the report button bar from 1099 vendors to all vendors:
*”Reprinted with permission © Intuit Inc. All rights reserved.”
Review this all-inclusive vendor report (step 2). For each vendor, you believe meets the 1099 year-end criteria verify that the name and amount appear on the default 1099 report. As a reminder the 1099 criteria
is entity type; payments type and amount; and payments for services or rents.
Troubleshooting the Default 1099 Tax Form Summary Report
i. During your review, when the vendor is a corporation make sure you have listed with the name the appropriate suffix. (Corp., Inc. or PC, etc.). Specifically, to modify the vendor name return to the vendor center and edit the vendor record.
ii. Is a vendor missing from the default QuickBooks® 1099 report? You need to verify that the vendor’s record in the vendor center has that vendor tagged as “eligible for a 1099”:
Vendor center > edit the vendor > click on tax settings and mark that the vendor is eligible for 1099. Furthermore, if you do not have the vendor’s tax id temporarily enter 99-9999999 as an ID.
Likewise, if you are unsure what entity type the vendor is, mark them eligible to receive 1099. Continue your review until you have successfully marked all potential QuickBooks® 1099 vendors as eligible to receive 1099. In fact, the IRS does not penalize for sending 1099 when it is not required. Contrarily, the IRS can assess a penalty when you fail to send 1099 MISC tax forms.
C. Reprint the default QuickBooks® 1099 year-end report
The QuickBooks® 1099 standard report is now ready for your use as an important tool in gathering missing information. Thus, for those vendors you have marked with a tax id of 99-9999999, you should request a completed W-9 form. A W-9 form will let you know if the vendor is a corporation and provide the correct spelling of the vendor name and provide their EIN or Social Security number. You can update the vendor record accordingly, changing the tax ID and if applicable un-marking eligible for 1099 (when a corporation).
Is the vendor still not appearing in the default QuickBooks® 1099 report? Determine which chart of accounts the vendor payments are posted to. Next, review your 1099 mapping again and make sure those accounts are pointing to Box 7 or Box 1 of the 1099 form. Remember, if the vendor was paid with a credit or debit card and had less than $600 paid in cash or checks, you are not required to send 1099.
As a result of your efforts above, when it comes time to print the 1099 MISC year-end tax forms, you will have no problems.
Order Your QuickBooks® compatible 1099 MISC Tax Forms in December
Count the number of potential 1099 MISC tax forms and place your order timely, so the forms are delivered by 12/31. Give us a call @ 800-216-0763, we can help you with your order and answer any questions you may have.
We sell 1099 MISC and 1096 tax forms for your vendors in packages that can be purchased in increments of 10 compatible with QuickBooks®. The additional cost when you increase your order by 10 forms is nominal, so be sure to order enough to cover all potential 1099 MISC vendors. Each package comes with 3 1096 transmittal forms. You can add additional 1096 forms to your order for 25 cents each.
Early in January, you will want to print from QuickBooks® the 1099 MISC year-end tax forms. They are due by 1/31 each year. However, if you can get the forms mailed to the vendors and hold off filing with the IRS for a few weeks, the vendors will have time to review their forms and alert you of any errors. Fixing 1099 before you submit to the IRS is so much easier than creating a corrected 1099.
We are available to answer any questions you might have about QuickBooks 1099 year-end tax forms.
1099: Troubleshooting and common questions
QB Issue Resolution:
The ability to generate and print 1099s is only available in QuickBooks Online Plus.
Top 1099 Questions
If you’re stuck, it’s possible one of these scenarios applies to you. Click the appropriate link below:
The bottom half of my 1099 form is misaligned.
Have payments that are excluded? Learn more here.
Why is a 1099 vendor not showing on the list or showing the correct amounts?
Double check that both of these tasks have been taken care of to have your vendor payments tracked correctly in the Prepare 1099-MISC Forms screen:
You’ve selected the vendor as a 1099 vendor.
You’re tracking these payments to the vendor in an account associated with a box from the 1099-MISC form.
If you’re not sure, you can take a look at both of these settings on the Prepare 1099-MISC Forms screen.
Selecting a vendor as a 1099 vendor:
Click Vendors on the left side of QuickBooks Online.
At the top right, click the button Prepare 1099s.
Step 1: Click Set up Vendors and Accounts.
Click Select Vendors.
You can type the vendor name or click to select the Vendors you’d like to track for 1099 purposes and then click Add.
Names you’ve selected should now show in the list on the right.
Once all vendors have been selected, click OK.
Now, you’ll land back on the Prepare 1099s MISC Forms page:
Click Assign Accounts.
Click to mark the 1099 box(es) you’re going to use.
Click on the drop-down menu on the right.
Select the appropriate account, or if you use more than one account, scroll to the top of the list and click Select Multiple.
If you Select Multiple:
–Under Select from List, highlight the appropriate accounts and click Add >.
Note: If subaccounts were used you must pick those specific accounts and not the parent account.
Once you have all the appropriate accounts listed under Include in 1099 Box, click OK.
If you are not sure what accounts should be assigned, run a Transaction List by Vendor Report.
Choose Reports > All Reports.
Click on Review Expenses and Purchases, then under to the Transaction List by Vendor report click Customize.
Set Date Range to Last Year (or Last Calendar Year ).
Click Change Columns; this will bring up the Select and Rearrange Columns window..
Under Available Columns select Split.
Click Add >.
Scroll down to the Lists section and set Vendor: to Select Multiple; this will bring up Select Vendors to Include in Report:
Under Select from List, select the 1099 vendors who are in question (you can hold down the CTRL key to select multiple names at one time).
Click Add >.
Click Run Report. Look under the Splits column for what accounts the vendor’s transactions were tied to. If you see the word -SPLIT-, click on the transaction to see details on what accounts were affected. If this is a Bill Payment, access the Bill itself to see what expense accounts were affected.
If the amounts don’t seem correct, here are some things to check:
The payments must meet or exceed the threshold for the box. In the Prepare 1099s screen, look at the top of the Preview 1099 and 1096 Information section to see the dollar amount in parentheses under the Box number at the top of the column. Check to make sure that these amounts exceed the threshholds for the box.
Make sure the correct Tax Year is selected in the Preview 1099 and 1096 Information section. When you open the Prepare 1099-MISC Forms screen you will see a drop-down menu for Tax Year under the Company Information box.
If this is a bill payment it might not be attached to the bill. Here’s how to fix that:
Go to the Vendors tab and click Pay Bills.
Mark the option Show all bills and set Show Location to – All Locations –
If shown, click to mark the Bill. If the payment is outstanding, you’ll see the full amount of the payment shown in the Credits column leaving the remainder in the Amt to Pay column. Adjust the Amt to Pay as needed; for example, if you only wish to apply the credit change Amt to Pay to 0.
Click Pay Bills…
Now the payment will show in the 1099 list.
If you’re still not seeing the correct information double-check that the payments were assigned to a vendor and not to an employee.
If the vendor was paid by credit card – those will be reported on a 1099K form submitted by the payment processor. See KB 4785 for more information.
Here’s a link to our in-product Help topic on assigning 1099 accounts: Assigning accounts for 1099
Why are the 1099 reports showing a lower amount than I have calculated?
Your 1099 can show an amount less than you paid your vendor if you recorded the vendor payments to income or equity accounts because these two types of accounts do not flow to 1099 totals. The payments need to be recorded or edited to expense-type accounts, or you can use an asset or liability account; however, if you want to use an account other than an expense account we’d advise you to consult your accountant.
These accounts also need to be assigned for your 1099-MISC forms. For steps on how to assign accounts for 1099 purposes, .
When I try to delete an account I’m getting an error that it is connected to 1099s.
In QBO you can’t delete an account that is being used to track 1099s. To delete the account you will have to take it out of the 1099 list. Here’s how:
Choose Vendors from the left side of QuickBooks Online.
At the top right, click on Prepare 1099s.
If 1. Set up Vendors and Accounts is not open, click on the plus box to the right of Show Setup.
Click on Assign Accounts.
If you won’t be using the 1099 box number selected, click in the box under Use to remove the check mark, then click OK.
If you need to change the assigned account, from the Account drop-down list, select the new account you will be using, then click OK.
If Select Multiple is showing in the box, click on the drop-down arrow to the right, then scroll to the top and click on Select Multiple. In the right column, click on the account to highlight it. Click Remove. Click OK, then click OK again.
You can now go back to the chart of accounts and delete the account.
Can’t find your 1099 MISC form?
Before you begin, make sure you’re on the QuickBooks Online Plus version. This version is the only one you can use to track 1099s.
Not sure what version you have? Here’s how to check.
Once signed in to your QBO company, click on the Gear Icon in the top right corner, select Your Account, here it will list your Product Version..
Need to upgrade? In that same area, click on the Upgrade and follow the prompts! NOTE: Once you upgrade, you CANNOT downgrade!
Also, depending on the time of year, sometimes business owners who are trying to get a jump start, look in their QBO companies for their current year 1099-MISC form and they can’t find it. QuickBooks Online does not make this form available until the later fall to make sure we’re providing the most accurate and up to date 1099-MISC form that is in agreement with the IRS.
Please continue to check back and you should receive a message/alert on your QBO homepage when the 1099-MISC form is available for the year.
I need to prepare and print a 1099 for a vendor even though they don’t meet the threshold
If this is the case, you’ll need to prepare that particular 1099 manually by running reports and filling in the form by hand. There’s no way to override the system and have QuickBooks Online print a 1099 for a vendor who doesn’t meet the threshold.
Resolution for Issue ‘1099: Troubleshooting and common questions’ available: Yes (Solved).
Source: Intuit Community forum.
1099: Troubleshooting and common questions: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for 1099
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!
Error Recovery for 1099 [Canada]
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QuickBooks 1099 Wizard | Easily Prepare & File 1099 Forms
The IRS has a 1099-MISC form, that reports the non-salary income. Such income is earned from self-employment, independent contractors, or others in the same category. You are very well aware that tax forms are to be provided to your employees. Similarly, as stated by the IRS, copies of 1099-MISC forms are to be submitted to your hired contractors. In this article, we talk about the QuickBooks 1099 wizard. It will guide you into generating 1099 information. Once that is done, preparing 1099-MISC and 1096 forms for printing or e-filing can be carried out.
Need Help Creating 1099 MISC in QuickBooks? Call Payroll Support Number (844)-888-4666 Now
The Types of 1099 Form and Key Points for QuickBooks 1099 e file
Several forms come under 1099 Forms but, given below we have described the most common ones in the the process to Set up and File 1099 form.
- 1099-MISC: The form reports the cash and the check payments from rent, self-employment, independent contractors, etc.
- 1096: It has the compiled all file 1099-MISC forms. The 1096 forms can be printed on pre-printed forms.
- 1099-K: The payments i.e. The electronic ones, that could not be reported in 1099-MISC are reported here. This form is not filed by QuickBooks users but by electronic payments companies such as the Paypal, Visa, MasterCard and American Express. The payments and compensations reported here must meet the IRS threshold.
Go through the key points for QuickBooks 1099 e-file before running the 1099 Wizard:
- Electronic, debit and credit card payments are Not recorded in the 1099-MISC form reporting. Such payments are recorded in 1099-K form and are to be filed by electronic payment companies such as the PayPal.
- Payments such as cash, checks and bills within the calender year are included in summary report of 1099-MISC form. Contrary the unpaid bills are not.
- Changing the vendor 1099 status in the QuickBooks 1099 Wizard, while QuickBooks 1099 e file, the change is reflected in the company file as well.
- The printed copies of 1099-MISC, be it on the plane paper are to be provided to your vendors.
- To map the account payments, there are 19 payment boxes on the 1099-MISC form. Each box holds a specific threshold mandated by IRS. QuickBooks and Intuit® E-file Service only support Boxes 1-10 and 13-14. Box 7: Non-employee compensation would be commonly used and has a threshold of $600.
Steps Involved to Set up and File 1099 Form
To Set Up and File 1099 Form using the QuickBooks 1099 wizard, click on Vendors. Next, select Print/ E-file 1099s and then 1099 Wizard. Click on Get Started and then move ahead, as stated in this blog. A quicker way to Create 1099 MISC in QuickBooks is talking to tax filing professionals at (844)-888-4666.
1. Select 1099 Vendors
To select the vendors for QuickBooks 1099 e-file, click on Vendor List. After selecting the vendors who require the 1099-MISC form, hit Continue.
2. Verify Vendors
The information that appears in front of you will be used on the 1099 forms. To edit the values, double-click on the cell within the table. Click on Continue on the wizard window to move ahead.
Note: The new QuickBooks 1099 Wizard update has a reminder set in under Remember for important fields to fill-in.
3. Map Accounts
The amounts will only be included for reporting, if they are mapped to boxes. To proceed and map accounts or omit payments follow the steps below:
To perform the above, select from the Apply Payments to this 1099 box. (If applicable, you can check-mark, Report all Payments in Box 7.)
In case a red message appears “Your settings do not match the current IRS thresholds”, do the following:
- Click on the hyperlink Show IRS 1099-MISC filing thresholds.
- As a final step, click on Rest to IRS Threshold
4. Review Payments
In the Form 1099-MISC, the IRS requires you to exclude reporting of electronic payments. Such payments include credit card, debit card, gift card, or PayPal payments.
If you have used check payments in Pay Bills or Write Checks to record vendor payment which is made by any of the following:
- Credit Card
- Debit Card
- Gift Card
- Third-party payment network such as PayPal
Also Read: If you are a QuickBooks Online user you can follow the instructions from our article Detailed Steps to QuickBooks Online 1099 e-File.
You must note the payment method in the Check-Field. QuickBooks 1099 Wizard automatically records such payments and excluded them from Form 1099-MISC. To review the report of included and excluded amounts, click on View Included Payments and then View Excluded Payments. Click on Continue to move ahead with QuickBooks 1099 Wizard.
5. Confirm Entries
Before completing the process to Create 1099 MISC in QuickBooks, review the vendors and amounts summary that will be reported. This information will be printed or used for e-filing. Though the payments below the threshold are also displayed, these vendors do not get a form 1099-MISC. Hit the Continue option next.
6. Choose Filing
With the use of QuickBooks 1099 e file service, electronically file with the IRS. Additionally, you can print form copies on plain paper.
Some important points that will come handy
- The 1099 forms won’t be accepted on the plain paper by the IRS.
- Instead of actual data QuickBooks will only print the vendor data.
- It is possible that QuickBooks might have compatibility issues with the free print 1099 template off the IRS website.
QuickBooks 1099 e file has been facilitated with the QuickBooks 1099 wizard. The right way to Setup and file 1099 form can be guided by tax support number at +1-888-300-3913. This will ensure that you do not have to go through monetary penalties.
Fix 1099 Forms Preparations – Common Issues and their Troubleshooting
QuickBooks software is the first choice of small and mid-sized business owners when it comes to accounting and bookkeeping. With the help of the advanced accounting software, business owners and accountants can handle and manage some of the most complicated tasks with utmost ease. But many a times they have to face some errors and issues that causes them obstruction of work. The software may malfunction, slow down, or temporarily stop responding to the user’s command. QuickBooks errors may show up anytime, for example, while downloading the software, updating or upgrading it, opening a file, during 1099 preparations, etc.
Read Also: How to become QuickBooks certified?
Most Common 1099 Issues & their Solutions
Here are some of the most common issues with 1099 and their solutions:
Issue: 1099 doesn’t show the correct amount
Solution: Here is what you can do if you face an issue where 1099 does not display the correct amount during preparations:
- In all cases, the payments must either meet or exceed the threshold for the box. When you are on the Prepare 1099s screen, you can find the dollar amount parentheses under the Box number at the top of the column at the top of the Preview 1099 and 1096 Information section. Ensure that these sums exceed the thresholds for the box.
- Check if the correct Tax Year is chosen in the Preview 1099 and 1096 Information section. Upon opening the Prepare 1099-MISC Forms screen, you will find a drop-down menu for Tax Year within Company Information box.
- In case this is a bill payment, make sure that it is attached to the bill, otherwise, you can amend it by following the given steps:
- Choose the Plus icon on the Toolbar.
- Select Pay Bills under vendor.
- Click the Filter drop-down.
- Select All for Payee and Location and click on Apply.
- Check the correct bill. In case the payment is outstanding, you will find the full payment amount displayed in the Credits column, leaving the rest of the amount in the Open Balance column. Adjust the sum, as required, in the Payment column – for example, if you want to apply the credit, you can change the Payment amount to 0.)
- Choose Save (or Save and close).
Note: If you still see the incorrect information, re-certify that the payments were assigned correctly to a vendor and not to an employee.
In case vendor was paid by credit card – 1099K form will have their reports submitted by the payment processor.
Issue: 1099 reports show an amount that is lesser than what you’ve calculated
Solution: Your 1099 can at times display an amount less than given to your vendor if you recorded the vendor payments to income or equity accounts, for these two sorts of accounts have no flow to 1099 totals. It requires payments to record or edit to expense-type accounts, otherwise you can make use of an asset or liability account; though, if you want to keep an account other than an expense account, you must consult your accountant first.
The accounts shall also be assigned for your 1099-MISC forms. For more and detailed information, you can check Assign accounts to 1099-MISC categories for ways on assigning 1099 accounts.
Issue: 1099 vendor is not there on the list when preparing 1099s
Solution: Here, we have sorted a few things to track vendor payments right in the Prepare 1099s screen:
- You’ve already chosen the vendor as a 1099 vendor.
- You’re tracking these payments to the vendor in an account related with a box from the 1099-MISC form.
See 1099 E-File Service: QuickBooks Online setup, troubleshooting, & FAQs for setup steps.
If you’re uncertain what accounts to assign – you can run a Transaction List by Vendor report.
- Select Reports from the left hand side menu.
- In the search bar, type Transaction List and select Transaction List by Vendor.
- Choose Customize option.
- Now, set the Report period to Last Year/ Last Calendar Year.
- Navigate to the Rows/Columns section and choose the Change columns link and put check the Split box.
- Next, go to the Filter section.
- Check the Vendor box and select 1099 vendors who are in question from the drop-down.
- Click on Run report.
- Find out what accounts the vendor’s transactions were tied to under the Splits column. In case the word -SPLIT- is there, select the transaction to see details on what accounts were affected.
- If you come across a Bill Payment, check the Bill and find out the affected expense accounts.
1099 form is misaligned
If the bottom half of your 1099 form may be misaligned or if you have other issues with 1099 form alignment, see Set up printing alignment for 1099 Tax Forms.
Issue: Print 1099 for a vendor who doesn’t meet the threshold
Solution: You can manually print 1099 for a vendor who doesn’t to meet the threshold. That can be done by running reports as well as filling in the form by hand. You can’t override the system and have QuickBooks Online print a 1099 for a vendor not meeting the threshold.
To access and view the 1099 Detail Report:
- Select Reports From the left menu.
- Type 1099 in the search bar and hit enter.
- Select 1099 Transaction Detail Report.
- Now, set the report date range to Last (Calendar) Year.
- Use filter to choose from lesser data on the report to a certain 1099 vendor or 1099 box.
- Select Run report.
This blog post consists of almost all the major 1099 issues and their solutions. If you need assistance in regards to 1099 or any other QuickBooks related issue, you can call +1-888-300-3913 and speak to our 24×7 QuickBooks Payroll Support experts.