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PortMike
January 14, 2023
Question

How do I set an COGS account to a 1099 account?

  • January 14, 2023
  • 2 replies
  • 0 views

I am trying to use the online 1099 reporting service.  I have my contractors set up as eligible for 1099s.  When I pay these contractors I also deduct the cost of materials that I supply.  Both the payment account and the materials account are COGS accounts.  However, I only want to include the payment account on the 1099-NEC and not the materials account.  When I try to use the Print/E-file 1099's service it picks up both accounts even though I pick to exclude the materials account.  I have read several articles about how to modify my chart of accounts to prepare for running 1099's but can find no reference on how to set an account to be 1099 account or not.

2 replies

LeithG
LeithG
January 16, 2023

Hi PortMike

 

Your post is on the Canadian Quickbooks site; 1099s aren't a thing here so I think you meant to post on the US site.

M
Mark_R
January 16, 2023

Hello there, @PortMike.

 

You'll have to select one 1099 account when mapping your 1099s in QuickBooks Desktop. I'll guide you through the steps.

 

  1. Go to the Edit menu, then select Preferences
  2. In the Preferences window, select Tax:1099 from the left pane, then select the Company Preferences tab.
  3. Select the link next to If you want to map your accounts to boxes on form 1099-NEC or 1099-MISC.
  4. QuickBooks 1099 wizard page will come up. You'll be directed to Map Accounts. This window displays all accounts used for payments to 1099 vendors. 
  5. From the Apply payments to this 1099 box drop-down, choose one of the 1099 boxes.

 

I'm adding this article for more guidance: Fix missing contractors or wrong amounts on 1099s.

 

You may also want to check out these resources to understand more about how to prepare your 1099s:

 

 

Come back to this post if you need clarification about this, @PortMike. I want to make sure you're taken care of.

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