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G
gtalovic
November 20, 2020
Question

Where do I change a contractor/vendor from 1099-MISC to 1099-NEC? The system knows the difference as it shows who is NEC and who is MISC on the "over threshold" report

  • November 20, 2020
  • 3 replies
  • 0 views
Where do I change a contractor/vendor from 1099-MISC to 1099-NEC?

3 replies

JasroV
JasroV
November 20, 2020

You can change your contractor or vendor to 1099-NEC when preparing their 1099, @gtalovic.

 

I’d be glad to guide you on how to achieve this in your QuickBooks Online (QBO) account. Here’s how:

 

  1. Go to the Workers or Payroll menu (Or select Expenses and then Vendors).
  2. Select the Contractors tab.
  3. Click Prepare 1099s and select Let’s get started.
  4. Ensure your company name, address, and tax ID is correct and matches the letters from the IRS.
  5. Select the Nonemployee compensation box represent the type of payments made to your contractor this year. 
  6. Fill in the needed details and ensure the mapping of your 1099 is accurate.
  7. Once done, you're now ready to file your 1099 forms.

For more details about this, you can check out this article for reference (read Step 3: Create your 1099s in QuickBooks Online section): Create and file 1099s using QuickBooks Online.

 

To learn more about the difference between 1099-MISC and 1099-NEC, you can refer to the links below that provide the complete details:

In case you made some errors or mistake in filing your Forms, you can utilize this resource that can guide you on how to handle the situation seamlessly: Correct errors on Forms 1099-MISC.

 

You’re always welcome to get back to me if you have other queries about preparing your 1099. I’d be more than happy to work with you again. Keep safe and take care.

S
suzymassel17
January 13, 2021

I have the same question, but for QB Desktop!

    S
    suzymassel17
    January 13, 2021

    I have the same question, but for QB Desktop!

    MaryLurleenM
    MaryLurleenM
    January 13, 2021

    I got you covered, suzymassel17.

     

    To achieve this in QuickBooks Desktop, we need to adjust your Chart of Accounts. This is to ensure accounts are set up on each form. By adding a new account to your chart of accounts, we can track the payment separately. Here's how: 

    1. Go to the Lists menu, then choose Chart of Accounts.
    2. Click the Account dropdown, then choose New to create a new account.
    3. Choose an account type of Expense, Other Expense, or COGS, then click Continue.
    4. Enter the Account Name and details such as Description, Note, and Tax-line Mapping.
    5. Select Save & Close.

    You can follow the same process for each new account to report on the 1099-NEC.

     

    Then, we need to add a journal entry to move the amounts to the new account. For more details, you can check out Step 4: Move the payments to the new account outlined in this article: How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

     

    Lastly, I recommend visiting the links below to help you in preparing your company and tax forms for the upcoming 2020 tax season:

    I'll be here if you have additional questions.

    S
    suzymassel17
    January 13, 2021

    I am curious why I cannot just Edit my Account?  Why do I have to make a new Account?  My Account is for Independent Contractors.  Why can't I just Edit that account? 

    H
    Heather313
    February 20, 2022

    hello I just realized when one of my contrators went to file there taxes that I filed Misc instead of NEC form and it was already mailed out how can I fix this

     

    T
    TirzahC
    February 20, 2022

    Let me route you to the right support, Heather313.

     

    You can contact our Customer Support Team. They can check the incorrect 1099 form and help you change it to the correct one. Let me show you how:

    1. Click the Help icon in the upper right of the screen.
    2. Select Contact US on the pop-up. 
    3. Enter your question in the How can we help? field and choose Continue. 
    4. Click Get a callback.
    5. Enter your contact information.
    6. Select Call me.

    For instructions on correcting your 1099s, please refer to this Tax1099 article: What Kinds of Corrections can I Make to 1099 Forms After they Have Been Submitted?.

     

    I also suggest using these IRS instructions when working directly with the IRS to make a manual amendment to your 1099 forms.

     

    To learn more about how 1099 works in QuickBooks, please see this article: Common Questions About 1099s.

     

    Additionally, I've added an article that'll help you have a handy copy of the form: How do I Print my 1099 Forms?.

     

    If you have other concerns or questions about 1099, just let me know by clicking the Reply button. I'll be glad to lend a hand.

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