Skip to main content
J
jimolson52
January 25, 2019
Solved

Why do some vendor payments escape 1099?

  • January 25, 2019
  • 1 reply
  • 0 views

Today I'm doing 1099s for 2018.  I have a vendor whose QBO profile clearly shows that she is due a 1099 at year's end.   The 1099 box in the lower right corner of her profile is checked for 1099.

When I enter the process to have Intuit prepare and file her 1099, the 2018 transaction summary shows $8500 worth of transactions with the vendor but only $2500 that will appear on her 1099.   

Why?

 

It's true that my transactions with her were applied to two or three different company accounts during the year, but all of these accounts are defined as expense accounts.  And there doesn't seem to be a clear pattern to indicate which transactions or accounts wind up in the 1099 category.

I have never seen in QBO a feature where a given payment to a vendor can be flagged or unflagged as 1099 qualified, so what's going on here?  Why are some payments to this vendor escaping 1099'ing?

At one point today I wandered into a QBO screen that listed transactions with her.  One column in the report was titled "Box 7".  Some transaction with her were pegged "Box 7" and some where not.

I tried to edit some non-Box 7 lines in this report to check them as Box 7 but the lines were not editable.   I'd have a hard time wandering my way back to this unfamiliar screen.

Thanks in advance to any reader of this forum who could offer ideas.

Jim in Indianapolis

Best answer by Mark_R

Hello jimolson52,

 

Let's get this 1099 sorted out and get you back to working order.

 

When preparing 1099, please make sure to categorize your payments to the correct expense accounts. This way Box 7 will show the correct amounts.

 

Here's how:

  1. On the left panel, click Expenses, then select Vendor.
  2. Click Prepare 1099s.
  3. Click Continue your 1099s.
  4. On the Categorize payments to contractors, go to Box 7 and include the missing expense account.
  5. Click Next.

Please feel free to see the screenshot below for your visual reference.

Feel free to read this article for your reference: 1099 E-File Service: QuickBooks Online Setup, Troubleshooting, & FAQs.

 

Don't hesitate to come back here to the Community if you have any other questions. 

1 reply

M
Mark_RAnswer
January 26, 2019

Hello jimolson52,

 

Let's get this 1099 sorted out and get you back to working order.

 

When preparing 1099, please make sure to categorize your payments to the correct expense accounts. This way Box 7 will show the correct amounts.

 

Here's how:

  1. On the left panel, click Expenses, then select Vendor.
  2. Click Prepare 1099s.
  3. Click Continue your 1099s.
  4. On the Categorize payments to contractors, go to Box 7 and include the missing expense account.
  5. Click Next.

Please feel free to see the screenshot below for your visual reference.

Feel free to read this article for your reference: 1099 E-File Service: QuickBooks Online Setup, Troubleshooting, & FAQs.

 

Don't hesitate to come back here to the Community if you have any other questions. 

J
jimolson52Author
January 26, 2019

Thanks for the quick reply to my posting, Mark.

It turns out that I could not reach the screen shown in your response to me, which denies me the ability to flag an account as 1099-qualified.  Whenever I tried to reach this screen QBO would jump me all the way to Step #4 Review without stopping at steps #2 and #3. 

I suspect this is because at some point in the past couple of day my bookkeeper or I had progressed to (or past) Step #4 Review. 

The trick to get back to the important screen Step #2 Accounts you mentioned is to use the Back radio button in the lower left corner of the Step #4 Review screen.

So now, after back stepping, I can freely flag accounts as being 1099-qualified. 

Thanks again for your help on this.  I'm not nearly so annoyed that Intuit charges so much for QBO. :-)

Jim Olson
Indianapolis, IN US

L
laurapoch
February 16, 2020

Wow! Your information was brilliant. Thank you

Terms & ConditionsAccessibility statement