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iceyskoolaidpick
January 27, 2024
Question

How to efile 1099 nec if contractor payments are below threshold?

  • January 27, 2024
  • 1 reply
  • 0 views
When I get to the 1099 is ready to be efiled message, The next screens says no 1099 found. I can only assume it is because my contractor is under the $600 threshold. I need the document for my child's proof of income for his Roth IRA.

1 reply

JoesemM
JoesemM
January 27, 2024

Let me help you with your 1099 concern, @iceyskoolaidpick.

 

Yes, you're correct. A 1099 is only issued to contractors who you paid more than the $600 annual cash threshold. That being said, QBO does not currently support filing 1099s below the threshold, which explains why there are no 1099s found.

 

You can see which contractors didn’t meet the threshold with these steps and 1099 reports. You can view all the information about individual contractors who could assist you with your Roth IRA.

 

Here's how:

 

  1. Follow the steps for your product to get started.
    1. Contractor payments with QuickBooks Online: Go to Payroll, select Contractors or Expenses, and select Vendors.
    2. QuickBooks Contractor Payments only: Go to Taxes, then 1099 filings.
  2. Select Prepare 1099s and select Continue until you get to the window called “Check that the payments add up.”
  3. Select the arrow next to the filter icon at the top of the table and change the type of contractors to 1099 Contractors below the threshold.

 

For 1099 reports, you may follow the steps below:

 

  1. Go to Reports (Take me there).
  2. Search for the 1099 Transaction Detail Report.
  3. Select Customize then Filter.
  4. From here you can choose a 1099 box, Type of Contractors, or Box Threshold.

 

To learn more about the process above, open these articles:

 

 

Additionally, these resources can give you more details as to when you're required to file 1099 and to learn more about the boxes on forms :

 

 

I'm more than willing to help if you have any other concerns with your 1099s or payroll-related tasks. I'm always here to lend a hand. Have a good one.

I
iceyskoolaidpickAuthor
January 27, 2024

Thank you for your response. I was able to see his payments and total for the year but not file the 1099. It is my understanding that my child requires proof of his income by 1099 or w2. Are you suggesting the report will suffice? 

I
IrizA
January 28, 2024

Hey there, iceyskoolaidpick. 

 

If you paid a contractor less than $600, you are generally not required to file a Form 1099-NEC. The IRS does not require filing a Form 1099-NEC if you paid a contractor less than $600. However, if you paid $600 or more to a contractor, you must file a 1099-NEC with the IRS. Therefore, if your contractor payments are below the $600 threshold, you are not obligated to e-file a 1099-NEC for those payments.

 

You can also access this material to learn more about 1099: Get answers to your 1099 questions. 

 

Furthermore, you can also run a Transaction Detail report and customize it according to your preference. 

 

If you have further inquiries, just leave it in the comment section and we'll be right here to assist you.

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