How to Create and File 1099s in QuickBooks Desktop & Online

Learn about how you can create and file your taxes with a great time-saving feature of QuickBooks Desktop. This feature allows you to prepare your 1099s using the information that is already available in your account. Create and File Your federal 1099s with QuickBooks Desktop in minutes. You have to File the Tax Forms with the IRS whenever you pay using Direct Deposit, Cash, or Check to the Contractors.

When you are done creating the 1099s then file them online. You can also print it and then mail it to the IRS. While mailing you get the option to send the mail copies to contractors or not. Here are the detailed steps that help you to Create and File Federal 1099 with QuickBooks Desktop.

What is 1099s Forms in QuickBooks?

1099s are identical to W-2 forms but are typically for Non-Employees. It is necessary for business to issue 1099s to the particular non-corporate service providers for the payments made during the specific year.

This form differentiates between different types of income which may not be classified under a regular job of the particular applicant.

How to Generate 1099 Forms from QuickBooks?

In accounting, Even a simple and small mistake can take a toll on your business performance. There is a very quick and hassle-free way to get the 1099 forms from QuickBooks. However, If you are a new user, you might find it a bit intricate. When you generate the 1099s forms, You are required to print out all 1099 Forms, Mail them, then complete the IRS Form and post that You need to Email the copy of it to different Partners. In this article, We will Learn a few simple steps to Print the 1099 Forms in QuickBooks.

Here are a few tips for you prior proceeding with the Printing of The 1099 from QuickBooks Online:

• You Need to obtain the W-9 Form from the Vendor Whenever you Deal with a New Vendor. W-9 form must contain the information like Name, Address and EIN.
• Once you Get the W-9 Form, You need to Create the Vendor Account in QuickBooks Online and the information must be absolute. It is always Sage to Commence the Quality Check for the Entered information to Avert Any Miss.
• Also, It is mandatory to Check if you are using the Recent updated Version of QuickBooks and QuickBooks Payroll Updates Tax Table.

Once the 1099 Form is completed here are few Possible Scenarios will form based on the Information you Entered in the Form.

Once the 1099 Form is Completed here are few Possible Scenarios will Form based on the Information You Entered in the Form.

• Different Values for Vendor Name, Company Name, and Full Name in QuickBooks.
  • Possible Scenario: Only the Full Name along with the Company Name will be visible on the Form 1099. It can also showcase a few Bank Feed Issues in QuickBooks.
• Vendor Name and Company Name both have their own values in QuickBooks Desktop.
  • Possible Scenario: The 1099-MISC Form will include both the Vendor Name & Company Name.
• No values for Vendor name and empty Company Name in QuickBooks.
  • Possible Scenario: Only the Vendor Name will be included on the 1099 Form.
• No Vendor Name Value and Empty Company Name in QuickBooks Desktop.
  • Possible Scenario: The Vendor Name column is a compulsory field and this is imperative to be filled. But there is an option to enter the vendor name and leave the Full Name blank. Apparently, the 1099 Form will only reflect the Company Name.

Why do You Need to Set up 1099s Forms in QuickBooks?

It is mandatory for all business owners to file Forms 1099 for specific payments that are made during the year. Such payments include:

• Payment for Services like Contract Employees, Unincorporated Maintenance People, Bookkeepers, Accountants, etc.
• Legal Counseling Fees
• Rent
• Interest Paid

How to Set up 1099s Form in QuickBooks?

Here is How You Set up 1099s Forms in QuickBooks.

• Prepare the Vendor Account or Edit it in case it is Already created.
• In the Menu Bar, Select the Vendor and then Choose vendor Center.
• Choose the Vendor from the vendor’s list or Select the Drop-down Button near the New Vendor left side of the screen and click it.
• In the New Window for Address Info, Add the Vendor’s Contact Details and Name.
• Select the Tax Settings on the left of the screen and Add the Vendor’s Tax ID Number in the Vendor Tax ID.
• Check-mark the Particular Box that Says Vendor Eligible for 1099.
• Select OK.

How to Prepare 1099 Tax Forms with QuickBooks Desktop?

To start the Procedure to Prepare 1099 Tax Forms then you have to follow the steps that are mentioned below:

• First, You have to start with QuickBooks and then You have to go to Vendors.
• After that Choose 1099 Forms.
• Then click on Print/E-file 1099 Forms.
• After that click on Get started and then Select 1099-NEC or 1099-MISC that depending upon the type of Your Contractors.
• Choose the Vendors Who require 1099s, then Click Continue.
• Verify that the Vendor Information is Accurate. Any section can be updated by double-clicking it and Editing the Incorrect fields. After Checking, Click Continue.
• Then Click on the Apply Payments to this 1099 Box From the Dropdown Menu. The Vendor Accounts you want to map should be selected. A box that is Grey Indicates that it is Mapped to the other 1099 form. One 1099 Form can be Assigned to each Vendor Account.
• Click Continue Once you’re Finished.
• After that Click on Show IRS 1099-MISC Filing Thresholds and Choose Reset to IRS Thresholds if you receive an Error Message informing you that your Settings don’t match the most recent IRS thresholds.
• Check Your Payment Information for Exclusions, and then Click Continue.
• Then you Review the Vendor and the Transactions you Intend to Report. Then Select Continue.

Steps to Create and File 1099s with QuickBooks Desktop

You have to follow the below steps to Create and File Federal Tax and then Print and Send or Email them to IRS. Follow the below-mentioned steps carefully:

Create and File 1099s with QuickBooks Online

You must submit 1099 forms to the IRS if you pay contractors in cash, checks, or direct deposits. Using the data you already have in your account, QuickBooks Online can help you in efficiently preparing your 1099s.

To prepare and submit your 1099s, follow the steps listed below. We may send or mail a printed copy of your 1099s to your contractors when you file them with us.

Setting up and Filing 1099-NEC and 1099-Misc For QuickBooks Desktop

• Begin by going to Vendors and then you have to click on Vendors Center.
• Make sure that Your Vendor Name, Company Name, and Address are all Accurate. Then you have to go to Tax Settings.
• Make sure that the key is Eligible for 1099.
• If the Person is Eligible and you have to make sure that they have a Tax ID Number.
• Then you have to decide Whether you need the NEC for Independent Contractors or Non-employee Compensation or You still need the 1099-Misc.
• Go to Vendors and then go to the Forms and then to Print/E-file. They will ask that you are ready to Print then you have to click Yes.
• Next, You can go to Verify your 1099 info and if case you want to do any edits then you can double-click on any box.
• Once all the details are Accurate you can Click on Continue.
• Then you have to Map Vendor Payments Accounts. In box 1 report all Payments. Simply decide if the Expense Category is NEC-Eligible or not.
• Then you have to Click on Continue.
• Now on Your screen, You can View included Payments or View Exclude Payments and then click on Continue.
• Then you have to Confirm the 1099 Entries Verify who gets the 1099 NEC Form and then click on Continue.
• Click on Print Form 1099-NEC and then Choose the correct Date and then Click on OK.
• After that, You have to go to the Checkmark Vendor. For Print 1099 you should have 5 copies. Then Print 1096.
• For the 1096 Form, If you are Sending Both Form 1099-MISC and Form 1099-NEC, You should need two Separate 1096 Firms.
• Click on Go to 1099 E-file Service. On Your screen, You will see Launch Web Browser and then click on OK.
• If you want to see Who Qualifies for 1099 then you have to go to Vendors and then go to 1099 forms. Then review the 1099 vendors and 1099 Summary Report.
• If you want to order your Forms Directly from Intuit then you have to order 1099 Forms.

How to File Your 1099-MISC and 1099-NEC in QuickBooks Online

• You have to go to your Dashboard and in the Navigation Bar, You will see Expenses.
• In Expenses, You have to select Vendors. This will take you to the list of Vendors.
• Then on the right-hand side, You will see Prepare 1099s.
• Click on the Prepare 1099s and you will be directed to Get ready to File Your 1099s Forms.
• In this, Get ready to file your 1099s Forms you will see order a 1099s kit, by clicking on this you will go to a new tab and you can order your 1099s kit.
• After that, You will see a Page for Review Your Company Information. In reviewing Your Company Info, Here you can click on Next. You will go to the Accounts, and here you can Categorize Payments to Contractors.
• By Clicking on Next you will go to Review Your Contractor’s info and Update Your Information. If Everything is Correct click Save and Close and Click on Next.
• After Clicking on the Next you will go to the check that the Payments Add up page. Once you are Done, You can click on Finish Preparing 1099s.
• Then you will go to pay for Your E-filing. You just have to pay for E-filing. After Completing you have to go to Continue to E-file my 1099s.
• After Submitting, You can also Track Your Status or you can Click on Take me there. Here you can see the Taxes Category and can View Your 1099s.

Which Payments Should be Excluded from the 1099-MISC and 1099-NEC Form

Credit Cards, Debit Cards, and third-party systems like PayPal Payments made to 1099 vendors are not included in the calculations for 1099-MISC and 1099-NEC. This is so that you don’t have to declare these payments; the Financial Institution does.

Where can I Find the Details of the Payment?

Select Your Product to Learn Which Payments are Disallowed.

1. QuickBooks Online and QuickBooks Contractor Payments

To Confirm Excluded Payments, You can run an Excluded Payments by Vendor report.

• Select Contractors from the Payroll menu, or click Contractors and Choose Contractors.
• Then you have to Select let’s get Started or Continue your 1099s after Selecting Prepare 1099s.
• Visit the window that is labeled Check that the Payments Add Up.
• Take note of the Excluded column. To View an Excluded Payments by Vendor report with Transaction Information, Pick the total in this Column. This will Enable you to Confirm Whether Payments ought to be excluded.

2. QuickBooks Desktop

• First, You have to go to Reports and then you have to select Vendors and Payables.
• Then you have to select 1099 Summary.
• Select All Permitted Accounts from the drop-down Selection for the 1099 options.
• Find the Account and Check to see if it was used to make a Credit Card Payment if you find the missing vendor.
  • Double-click the Vendor’s Total Amount in the Total column.
  • Make note of the Accounts in the Account Column of the 1099 Detail Report.
• For these Transactions to Appear on 1099 Reports and Forms
  • Select Preferences after clicking Edit.
  • Choose Tax:1099 From the left pane of the Preferences Panel, then click the Company Preferences option.
  • Selecting the link Next to If you want to match the Accounts on Your Form 1099-MISC to the boxes.
  • A page from the QuickBooks 1099 wizard will Appear. Your path will lead to Map Accounts. All Accounts that have been used to pay 1099 Merchants are Shown in this Window. Select one of the 1099 Boxes from the Apply Payments to this 1099 Box Selection.
• Close the 1099 Detail Report When Finished.
• Select only 1099 Accounts from the Second drop-down list of 1099 Options.

Quick Ways to Creating Form 1099 in QuickBooks

You must need to verify if the contractor category falls under the individual contractor category in the IRS guidelines before Creating a 1099 Form in QuickBooks. Here are a few points written below to assist you to setup the contractor under the independent category.

You need to Setup the Vendor in Autonomous Category

• Turn on the QuickBooks and Navigate to “Edit” and hit on “Preferences” options.
• After that, choose the “1099” for tax and hit on “Company Preferences“.
• Once you get the option do you file 1099 misc-form? Click on Yes.
• And lastly, Choose Ok.

Creating a Vendor’s Account in QuickBooks

• Turn on the QuickBooks and Select the “Vendor Center“.
• You need to Select the New Vendor option from the Dropdown.
• After that, Enter the Vendor Name in the “Vendor Name” Column under the Vendor Listing.
• Enter the Complete Details. If there is any miss in Entering any Information, and you get to Know about it later than no need to worry because you can Modify the Supplier Details to Enter any Additional Information.
• And Lastly, Hit the “OK“.

Create the Vendor Account QuickBooks to get 1099-MISC

• Turn on the vendor option in QuickBooks and Select the “Vendor Center“.
• Find the Supplier’s Name then Click right on It.
• After that, Select the “Edit Vendor” and in the End Go to the “Address Info” and Verify all the Details.

Creating the Expense Account

• Turn on the QuickBooks and go to the Edit option and Click on the Preferences.
• Click on the “Tax: 1099” option in the Left and After that click on “Company Preferences“.
• Choose Yes once you get the option “Do You File 1099-MISC Forms?“
• Now you are required to map the Accounts to the box and Calculate Form 1099 QuickBooks. After the completion of Calculation the QuickBooks 1099 Wizard will be visible with the list of all the Vendor to Which we have Made the Payments.
• After that Click on the 1099-MISC Box or Add Payments. Prior to doing that this is mandatory to Consult with the Tax Expert.
• Choose the 1099-MISC Box and once the Accounts are Mapped, Click “Save & Close” as Shown in the below Screenshot.
• Here are 3 Important Fields in QuickBooks Which are Vendor Name, Full Name and Company Name.

How to E-File 1099 with QuickBooks Desktop?

Through a connection called Dancing Numbers, QuickBooks Desktop makes it possible to E-filing Forms. You will require importing your data into Tax 1099 after creating your 1099 forms in QuickBooks Desktop. You have to go to 1099 E-File Services in QuickBooks Desktop. It will redirect you to the Tax1099 landing page. Log into your Tax 1099 account or sign up if you don’t currently have an account. As soon as you log in, Dancing Numbers offers assistance in deciding how to import your data from QuickBooks Desktop. To import your data, simply follow the instructions. You will find that the Tax 1099 dashboard is displaying the list of vendors, amounts, and boxes once you have successfully imported your data. Follow the steps that are mentioned below to e-file your 1099s.

• Select the vendor name or click the Edit button to make changes to the information.
• Fill out the information under the appropriate state boxes if you want to e-file 1099s with your state.
• By selecting the box, choose the vendors you need to e-file for, and then click Next.
• By checking the box next to the Date column, you can select the vendors.
• Depending on how you wish to send copies to the recipients, choose the box next to USPS Mail or Email Recipient. But there is an additional fee if you choose USPS Mail.
• Downloading PDFs is an alternative if you want to provide vendors with their copies yourself.
• Select the 1099s you need to file with your state here, and then click next.
• You are directed to the Payment page after entering all the appropriate options and filling out the required information on the Select Forms screen.
• Select Pay & Submit to e-File and enter your payment details.

How to Import the 1099-DIV Forms?

The only thing that the user needs to ensure before they can import the 1099-DIV forms is that they need to make sure that they have opened the correct company inside.

After that, the user can move on to import the 1099-DIV forms from QuickBooks.

Following are the steps that the user must follow in order to be able to import the 1099-DIV forms:

• The first thing that the user needs to do if they wish to import the 1099-DIV forms from QuickBooks is that they need to select the option titled ‘Import Data‘ from the menu that is on the top.
• After selecting the option titled ‘Import Data‘ from the menu that is on the top, the next thing that the user needs to do is that they need to select ‘From QuickBooks (W2 and/or 1099 Data)’. Clicking on this option will open the QuickBooks Import Wizard.
• Now, the user needs to read the message and understand that they will need to have QuickBooks open and actively running.
• After that, the user can proceed to click ‘Next‘.
• After clicking ‘Next‘, the next thing that the user needs to do is that they need to click ‘Connect to QuickBooks‘. Clicking on ‘Connect to QuickBooks‘ will open a dialogue from QuickBooks that will ask the user if they wish to authorize to access the company information in QuickBooks.
• After the subsequent step, the user will need to click ‘Yes‘ to move forward.
• The user will now need to allow the application to access the user’s personal data. There will be a checkbox regarding the same thing that the user must select to provide the necessary permissions.
• Now, the user needs to click ‘Continue‘.
• After clicking the ‘Continue‘ button, the user will need to select ‘Done‘, followed by selecting ‘Next‘ two times, Which will take them forward.
• Now, After that, the user needs to select the 1099 data.
• Next, the user must select ‘Tax Year‘ the user will be able to spot in the drop-down menu.
• After selecting ‘Tax Year‘ from the drop-down menu, the user will need to select ‘Form 1099-DIV‘ from the drop-down menu.
• Thereafter, Selecting the ‘Form 1099-DIV‘ from the drop-down menu, the next thing that the user needs to do is that they need to select the appropriate 1099-DIV box for monetary amounts from the drop-down menu.
• Now, the user will again be required to select ‘Next‘, followed by selecting ‘OK‘.
• Finally, After that, the user will be required to review all the data that they are wanting to import. After reviewing the data, the user can press ‘Next‘, and finally, the user can press ‘Finish‘, and the import process will have been completed successfully.

In this article, you get the detailed process to create and file your Federal 1099s with QuickBooks Desktop. The whole process helps you to conveniently create and file taxes using QuickBooks Desktop. For any further queries about the tax forms, you can connect with the Dancing Numbers team anytime whenever required. The expert team members are available 365 days a year to assist you with all your queries and problems.

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