How to Create and File 1099-NEC Tax Forms in QuickBooks Desktop & Online

Do you want to know, how to do a 1099 in QuickBooks, without getting help from an expert? If yes, then you are landed on the right platform. In this article, we will show you, how to create and file a 1099 form in QuickBooks Online, and QuickBooks Desktop.

Let’s start the article, with some of the important points before preparing the tax form in QuickBooks:

Points to Keep before filing 1099 tax forms in QuickBooks:

Before creating and filing 1099 tax forms in QuickBooks, you must be aware and you must keep some points in your mind. Let us have a look at those points:

  • If you pay 600 Dollars or more in the form of cash, cheque or directly deposit it to any non-employee, then the IRS demands you to file a “1099-NEC” tax form.
  • And if you made a payment by any electronic form such as debit card, credit card etc, then you don’t have to file any tax form.
  • Any information reported in the Box-7 in “1099 MISC” would now be reported in the Box -1 of “1099 NEC”.
  • You must be aware of the fact that in some states you need to file 1099 tax forms separately. 
  • You need to file your 1099 tax forms on time, so that it can be postmarked to your contractors on time.

How to process 1099 tax forms in QuickBooks Desktop

Now let us look at the steps on how to create and file 1099 tax forms in QuickBooks Desktop:

Step 1: Setup the 1099 Account

  • First of all you need to set up your 1099 account. If you pay your contractors by different types of cash payments then you have to file both “1099 NEC” and “1099 MISC”.
  • If you file both “1099 NEC” and “1099 MISC”, then you have to set up your account in such a way that it can track both types of payments separately.
  • Then open your QuickBooks Desktop software and press “F2” on your keyboard to check the information of your QuickBooks Desktop software.

Step 2: Update the QuickBooks Desktop

  • If your QuickBooks Desktop is of the latest version then move to the next step and if it is not the latest version, then you have to update your QuickBooks Desktop software.
  • If you are a Mac user, then you have to open your QuickBooks Desktop and you have to check the QuickBooks drop-down list to make sure if any new update is available or not. And then update to the latest version.

Step 3: Create your 1099 Tax Form

  • Now you have to create your 1099 tax form file in QuickBooks Desktop. These are the steps to create a 1099 file in QuickBooks Desktop:-

How to Create 1099 Tax Form For Windows and other QuickBooks Desktop users

Follow the procedure to create a 1099 tax form for Windows and other QuickBooks Desktop users:

  • Open the “Vendors” option in QuickBooks Desktop and click on “1099 Forms” and then click on “Print/E-File 1099 Forms”
  • Then you have to create a backup of your files in QuickBooks Desktop.
  • Click on “Get Started”  and the type of 1099 form that you want to create. Sometimes you have to file for both “1099 NEC” and “1099 MISC”. You must select your forms correctly and you must be aware of the rules of filing these forms in your state.
  • Select the vendors who need 1099 forms and click on “Continue”.
  • Then you should check the details of the vendor and should also edit it if any changes are required, then click on “Continue”.
  • Open the “Apply payments to this 1099 box” section and you have to map the payment account of the vendors and have to link payment to the selected account.
  • If a message having the text “Show IRS 1099-MISC filing thresholds” pops up on your screen then click on “Reset to IRS Thresholds”.
  • Check the details of your payments and look if any payment can be excluded or not and then click on “Continue
  • And also check the reports of vendors and also check the amount you want to report. You can click on “View Summary report” to check which vendor does not satisfy the “IRS Threshold”.
  • Then you can either print or e-file the 1099 tax reports.

How to Create 1099 Tax Form For QuickBooks Desktop Mac Users

Here is the procedure to create a 1099 tax form for QuickBooks Desktop Mac users;

  • First of all, you have to create a backup of your files in the QuickBooks Desktop.
  • Open the “Vendors” option in QuickBooks Desktop and click on “1099 Forms” and then click on “Print/E-File 1099 Forms”.
  • Then click on “Get Started”  and the type of 1099 form that you want to create. Sometimes you have to file for both “1099 NEC” and “1099 MISC”. You must select your forms correctly and you must be aware of the rules of filing these forms in your state.
  • Select the vendors who need 1099 forms and click on “Next”.
  • Then check the details of the vendor and should also edit it if any changes are required, then click on “Continue”.
  • And open the account drop-down list and map the payment accounts of the vendors and click on “Next”.
  • Check the details of your payments and look if any payment can be excluded or not and you can check the details of the reports by clicking on “View Included Payments” and “View Excluded Payments” and then click on “Next”.
  • You can either print or e-file the 1099 tax reports.

Step 4: Import data into Tax 1099

Now, you have to click on the E-file button and follow the onscreen steps to import your data into your Tax 1099 account.

Step 5: E file your 1099s

After import, you can see Tax 1099 Dashboard will display the list of vendors, amount, boxes.

  • First, you have to select the vendor name.
  • Go to the Edit button to edit information and select update. Remember, The changes which you have done in Tax1099, that does not flow back to your QuickBooks Company file.
  • If you want to file 1099s in your state, then put the information under the state boxes.
  • Then, check the box of the vendors whose you want to upload an e-file and select Next. If you get any errors, then correct them.
  • Select Vendors again and then select Next.
  • Then  select the vendors beside the Date column. Then under USPS mail or Email Recipient, you can see the process of how you can send copies to the recipients/vendors. You can select Multiple PDFs to provide vendors their copies. Remember, there will be an extra fee if USPS mail is selected.
  • If you want to file with your state, choose them here.
  • Select Next or calculate Tax1099.com fee  to see the total filing fee.
  • When you are finished with the options on the selected form page you will be taken to the Payment Page. After entering your payment information, select Pay & submit to e-file.
  • If you want to create both 1099-NEC and 1099-MISC, then you have to repeat the steps for the other form.
  • After preparing your 1099s in QuickBooks, choose E-file to follow on screen steps and import the data into your Tax1099 account.

Step 6: Check the status

After submitting the 1099s, go back to your account and check the status 

How to process 1099 tax forms in QuickBooks Online

Now let us look at the steps on how to create and file 1099 tax forms in QuickBooks Online:

Step 1: Setup 1099 Account

  • First of all you  need to set up your 1099 account. If you pay your contractors by different types of cash payments then you have to file both “1099 NEC” and “1099 MISC”.
  • If you want to file both “1099 NEC” and “1099 MISC”, then you have to set up your account in such a way that it can track both types of payments separately.

Step 2: Create Your 1099s In QuickBooks Online

Now you need to create the 1099s in the QuickBooks Online by following the below procedure;

  • Open the “Payroll” menu and then click on “Contractors” or click on “Expenses” and then select “Vendors”.
  • Click on “Prepare 1099s” and then click on “Let’s get started”.
  • Then you must check and make sure that all the details match with the details present in the tax invoices of the “IRS”.
  • Select the boxes that show the payment type you used to pay your contractors for the whole year and then click on “Next”. There are changes to the 1099s forms and boxes in 2021 for tax so you have to choose your box carefully.
  • Make sure that all contractors’ names and details should be present and check if the details are correct or not. If  any contractor’s name and details are missing then you can add it from the “Add from Vendor list” option.
  • And check and verify the totals of all payments for each box.
  • The payment will be automatically separated between the 1099-NEC and 1099-MISC form.
  • Select Next.
  • After you have successfully created the 1099s, then click on “ E-File for me” and Then you can either print or e-file the 1099 tax reports.

Step 3: E file 1099s

Check the information on your 1099s whether it is correct or not and then e-file.

  • You can either print or e-file the 1099 tax reports.
  • After you have successfully created the 1099s, then click on “ E-File for me” and then check all the 1099 tax forms and click on “Continue
  • You have to make sure that all information in the tax forms are correct and select the forms that need to be e-filed and then click on “Continue”.
  • Enter the details of the bills and click on “Approve”.
  • Verify the total number of forms and the total amount and click on “Continue”.
  • And enter the email address of all the contractors and click on “Continue”.
  • After that review your 1099 forms to make sure the information from QuickBooks Online is correct.
  • Select only the 1099s forms which you want to submit. Then press continue.
  • Then click on “View forms” and verify all the information and click on “Continue”.
  • Select the “Submit final forms” option to submit the forms.
  • And check and verify the status of your submitted file.

Step 4: Check the filing status

After your submission, we will notify the status of the filling through an email. You can also check the status at any time from your 1099 E file account.

  • If it shows “Not submitted”, you have not filed the form 1099-NEC or 1099-MISC with the IRS.
  • And if it shows “Submitted”, you have e-filed the form to the IRS.
  • If it shows “Receive by IRS” that means the IRS has received your form and either it is processing or it already has processed and approved it.
  • You will get a confirmation mail after the IRS accepts and confirms the submission. 

This was the procedure to create and file 1099s with both QuickBooks Desktop and QuickBooks Online. We hope, you find it informative, and now you can easily process the 1099 tax forms easily ownself. Still, if you have any confusion, or doubts regarding this issue then you can ask our QuickBooks ProAdvisors through a phone call +1-818-295-3510. They will definitely help you to resolve your issue.

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