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alex-elizabethri
January 18, 2024
Question

Ho do I generate a 1099-INT and file it with the IRS?

  • January 18, 2024
  • 1 reply
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Our business took a private loan secured by real property.  We need to generate a 1099-INT to show the interest payments we made to the lending party.

    1 reply

    Candice C
    Candice C
    January 18, 2024

    Good afternoon, @alex-elizabethri. 

     

    I appreciate you coming here with your question about 1099-INT. Let me provide you with some information to help you out. 

     

    QuickBooks enables you to print vendors and prepare 1099-INT forms selectively. Nevertheless, QuickBooks cannot e-file these forms or correctly print the necessary 1096 to accompany them, as it defaults to checking the MISC box for the type being filed. However, there is a solution to this issue. 

     

    You can print your 1096 for the 1099-INT on blank paper, cut off the bottom of the page that includes the checkmark, and then place it in your copier to copy onto the approved red IRS 1096. The IRS only accepts preprinted red 1096 forms and will penalize you if you print on plain paper with red ink. After copying, you can then check the appropriate box. It may take some practice to align the form correctly. The deadline to submit 1099-INT by mail to the IRS is February 28th, although recipients still need theirs at the same time as the MISC forms.

     

    Furthermore, the amount reported in Box 2 for Royalties on a 1099-MISC corresponds to the Box 1 Interest Income on a 1099-INT. Therefore, the workaround involves mapping the interest-receiving vendors' Interest Expenses to Box 2 for Royalties.

     

    I'm also adding this page if you need guidance for tax filling the next fiscal year, check out this article: Year-end guide for QuickBooks Online.

     

    I hope this helps and you get the results you need. I'm only a post away if you need me again. Take care! 

    T
    Thilmony
    January 30, 2024

    How do I file part NEC and part INT? we have more than 10 1099-NEC's so it says we have to file electronically.  Can I manually file the 6 remaining 1099-INT's? Thanks

    Clark_B
    Clark_B
    January 30, 2024

    Welcome to the Community, @Thilmony.

     

    Let me help and provide information about the 1099-NEC and INT in QuickBooks Online (QBO).

     

    Here's how to create and file a 1099-NEC:

     

    1. Go to Payroll, and select Contractors.
    2. Select Prepare 1099s.
    3. Make sure your company name, email, address, and tax ID are correct and matches what's found on tax notices or letters from the IRS. Select Edit  to make any changes.
    4. Select Confirm info and get started.
    5. Select Select accounts and choose or confirm the accounts used for your 1099 expenses or payments, then select Add.
    6. Next to each account added, select the 1099-NEC or 1099-MISC boxes that represent the type of payments made to your contractors this year. Select Next. Important: Choose your boxes carefully. Most businesses will choose Nonemployee compensation, Box 1 1099-NEC, but check with your accountant if you think you might have made other types of payments.
    7. On the Tracked for 1099 tab, place a checkmark next to each contractor who should get a 1099. Make sure ‌the contractors' personal info and email addresses are correct. Select Edit to make any changes.
    8. If a contractor is missing, select the Not Tracked for 1099 tab. Select Add to tracked list to add the contractor to the Tracked for 1099 tab then select Back.
    9. Review the Reportable total amount for each contractor selected then select Next. Note: You won't see certain electronic payments to contractors such as those made by credit card, Paypal, etc. This is because these are reported for you by the credit card company, bank, etc. If you don’t see all of the payments you expect, from the Reportable Payments Only drop-down select Non-reportable Payments Only.
    10. Select Preview to view each 1099 and review the amount in each box. Select Continue to 1099-MISCs to view your 1099-MISC forms. Select Next.
    11. Select Continue to E-File to e-file your 1099s. Or select I’ll print and mail to print and mail the forms yourself.

     

    For more detailed information about filing 1099, refer to this article: Create and file 1099s with QBO

     

    On another note, the option to file or prepare 1099-INT is currently unavailable. You'll have to file or print it outside QuickBooks.

     

    For future reference, you can check these articles to learn more about the different federal payroll forms and which payments should be excluded from the 1099-NEC form.

     

     

    Don't hesitate to leave a comment below if you have follow-up questions about 1099 or other QBO-related concerns. I will answer them in any possible way.

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