Steps to process 1099 tax forms in QuickBooks Desktop & Online

Do you want to create a 1099 tax form and file it? Are you facing any problem in processing 1099 in QuickBooks? Then here we are to help you with all the steps to create and process 1099 tax forms in QuickBooks. Apart from that you can also contact our expert team +1-888-202-8743 if you need further help.

Points to remember 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.
  • 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.

Steps 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:

  • 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.
  • 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.
  • 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:-
  1.  For Windows and other QuickBooks desktop user

i) Open the “Vendors” option in QuickBooks Desktop and click on “1099 Forms” and then click on “Print/E-File 1099 Forms”

ii) Then you have to create a backup of your files in QuickBooks Desktop.

iii) 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.

iv) Then you have to select the vendors who need 1099 forms and click on “Continue”.

v) Then you should check the details of the vendor and should also edit it if any changes are required, then click on “Continue”.

vi)Then you have to 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.

vii) If a message having text “Show IRS 1099-MISC filing thresholds” pops up on your screen then click on “Reset to IRS Thresholds”.

viii) Then check the details of your payments and look if any payment can be excluded or not and then click on “Continue”

ix) Then you have to 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”.

x) Then you can either print or e-file the 1099 tax reports.

  1. For Mac users

i) First of all you have to create a backup of your files in QuickBooks Desktop.

ii) Open the “Vendors” option in QuickBooks Desktop and click on “1099 Forms” and then click on “Print/E-File 1099 Forms”

iii) 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.

iv) Then you have to select the vendors who need 1099 forms and click on “Next”.

v) Then you should check the details of the vendor and should also edit it if any changes are required, then click on “Continue”.

vi) Then you have to open the account drop-down list and map the payment accounts of the vendors and click on “Next”.

vii) Then 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”.

viii) Then you can either print or e-file the 1099 tax reports.

  • After creating your 1099 tax reports, then you have to import your file to the “Tax1099 account”.
  • After the importing of the file is completed, then open the dashboard of the “Tax1099 account” and you will be able to see the list of amounts, vendors and boxes.
  • Then you should click on the vendor name and edit its data and then click on “Update”.
  • If you want to file your 1099 tax forms with the state,then you can enter the data of the state in the preferred state box.
  • Then you have to select the vendor to whom you want to upload your file and then click on “Next”
  • Then you can choose how you want to send your file to the vendors and click on “Next”.
  • Once all these steps are completed, then go to the “Forms page” and the payment page will open on your screen.
  • Then you have to enter all the details of your payment and then click on “Pay and Submit”
  • When the 1099s are submitted to the IRS successfully, then you check their status in your “Tax1099 account”.

Steps 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:

  • 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.
  • Then you have to 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”.
  • Then you have to select the boxes that show the payment type you used to pay your contractors for the whole year and then click on “Next”.
  • You have to 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.
  • Then you have to check and verify the totals of all payments for each box.
  •  Then 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”.
  • Then you have to enter the details of the bills and click on “Approve”.
  • Then you should verify the total number of forms and the total amount and click on “Continue”.
  • Then you have to enter the email address of all the contractors and click on “Continue”.
  • Then click on “View forms” and verify all the information and click on “Continue”.
  • Then click on “Submit final forms” to submit the forms.
  • Then you have to check and verify the status of your submitted file.

Final Words

We hope that now you can process the 1099 tax forms easily by yourself. We will recommend you to read the entire article carefully without skipping a single step so that you can successfully process 1099 tax forms. You can drop a call to us if you need any help from Wizxpert through the QuickBooks experts.

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