Year-End Guide support informationpage qbw:YEG Year-End Guide
QuickBooks Year-End Guide

 

Task A - Verify 1099 Information
Q: How do I set up a vendor as a 1099 vendor?
A: To set up a vendor as a 1099 vendor:
  1. From the Lists menu, choose Vendor List.
  2. Select the vendor for whom you want to file 1099-MISC forms.
  3. Click the Vendors menu button, and choose Edit.
  4. At the Address Info tab, make sure the vendor's address contains the two-letter state abbreviation and the zip code.
  5. If the vendor is a person, the vendor's legal name should appear in the First Name, M.I., and Last Name fields
  6. If you know the company name but not the person's name, leave the Company Name field blank to avoid double names on the 1099-MISC form.
  7. Click the Additional Info tab.
  8. Select the "Vendor eligible for 1099" check box, enter the vendor's tax identification number.
  9. Click OK.
Q: How do I set up an account as a 1099 account?
A: To set up an account as a 1099 account:
  1. From the Edit menu, choose Preferences, and then select Tax:1099.
  2. Select the Company Preferences tab.
  3. Click Yes, for "Do you file1099-MISC forms?".
  4. Choose an account or accounts to associate with the 1099 categories for which you report amounts to the IRS.

    1. Click the Account column and choose an account from the drop-down list.

      Or

    2. For more than one account, choose Selected Accounts from the list and place a checkmark next to each of the accounts you want to use.

  5. Click OK.
The accounts you select should be the same accounts you use to track payments related to your 1099 vendors. An account can belong to only one 1099 category. For example, if you set up an expense account named "Payments to subcontractors" and you have selected it to track the 1099 category "Nonemployee compensation", you can not use "Payments to Subcontractors" for any other 1099 category.

Typically, the accounts will be expense accounts but you can also associate an other expense account, a long term liability account, an other current asset account, etc. with a 1099 category.

Note: Your business may not need to report on all 1099 categories, many businesses report amounts only for Box 7: Nonemployee compensation.

Task C - Create a 1099 report
Q: How do I create a 1099 report, which will verify that I have Forms 1099 set up correctly?
A: To create a 1099 report that will verify your 1099 vendor information:
  1. From the Reports menu, choose Vendors & Payables, and then choose 1099 Summary Report.
  2. Note: Be sure the date range for the report is the same as the one for your 1099-MISC forms. Change it if necessary.
  3. Examine the report for missing 1099 vendors.
  4. In the 1099 report buttonbar, choose "All vendors" from the list. If a missing 1099 vendor appears, you need to set up the vendor as a 1099 vendor.
  5. After all 1099 vendors are set up correctly, if some are still missing, choose "All allowed accounts" from the list for accounts.
  6. Choose "Only 1099 vendors" from the list for vendors.
  7. Double-click any amounts in the Uncategorized column.
  8. In the Account column of the 1099 Detail report, if you see any accounts that you need to set up as 1099 accounts.
  9. Repeat Steps 7 and 8 for each amount in the Uncategorized column. Choose "Only 1099 accounts" from the list for accounts.
  10. Choose "Only 1099 accounts" from the list for accounts. Note: You should now see all expected 1099 vendors to whom you have paid amounts that total or exceed the threshold for the 1099 category.
  11. If a vendor is still missing, choose "Ignore thresholds" from the list for thresholds. The vendor may not have met the threshold for the year.
Note: The report covers actual payments made during the year, regardless of the original date of the vendor's bill.
Task E - Resolve 1099 errors
Q: How do I resolve the message, "You have selected to Print 1099s for one or more vendors who do not have a valid address on file. Are you sure you want to continue?", when printing 1099s?
A: The message occurs when a vendor's address begins on the first line of the address box instead of the vendor's name. To resolve the problem, edit the vendor's record in the Vendor list and begin the vendor's address on the second line of the address box.