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patelaku
December 27, 2021
Question

1099 NEC payments showing up as excluded

  • December 27, 2021
  • 1 reply
  • 0 views

when I try to file my 1099 all my contractors payments show up as being below threshold(when they are not).  It appears that the NEC value in Zero and Excluded value is equal to the payment I made.  Why are my contractors showing up as Exlcuded from 1099 when I have them enabled for 1099 tracking?  I have tried everything at this point and read all message boards on this subect. Please help asap

1 reply

G
GlinetteC
December 27, 2021

Hi there, patelaku.

 

I'm here to share some information with you about the payments showing up as included in QuickBooks Online.

 

Excluded payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-NEC calculations. It's because the financial institutions report these payments.

 

For more additional information, you can refer to this article: Understand which payments are excluded from a 1099-NEC and 1099-MISC.

 

Also, I've included some resources about what you need to do if you file both 1099-NEC and 1099- MISC:

 

 

Tag me in a comment if you have other questions about 1099's in QuickBooks, @patelaku. I'll be sure to get back to you.

P
patelakuAuthor
December 27, 2021

Hi Glienette

 

My payment type is set to check (this is how everyone was paid). I have confirmed and verified it.  

C
ChristieAnn 11
December 27, 2021

Hi there, patelaku.

 

I appreciate you for coming back to the thread to add further details about your concern. With this, I'll be sharing additional details on how 1099 NEC works in QuickBooks Desktop. Then, troubleshooting details to ensure that the details of your contractors appear in 1099 accurately.

 

As mentioned above, Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. Thus, only vendors you paid via cash or check should be reported but if you entered a check for payment and used DBT or Paypal as the check number, it will be still ignored and will be excluded from the 1099-MISC and 1099-NEC.

 

Additionally, I also recommend checking the mapping of your accounts that were used for 1099 to ensure that the payment for the vendor shows correctly. You may refer to this article on how to perform the process: Modify your chart of accounts for your 1099-MISC and 1099-NEC filing.

 

Lastly, you may refer to this article on how you can add a contractor or change an amount when you create your 1099s in QuickBooks: Fix missing contractors or wrong amounts on 1099s.

 

Drop a comment below if you still have questions or concerns with 1099 or the program. I'm always here to help. Take care and have a great day.

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