Why was a 2023 1099 not produced for our legal firm whom we paid more than $600 in 2023?

Hi there, MarshaClark.

I'll provide insights and clarification on how 1099 works in QuickBooks Online. I'll also ensure that the contractor transactions show up on the 1099 so you can prepare and file this tax form.

Please know that 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. This could be the reason the 2023 1099 was not displayed on your end. You need to make sure your contractors are not paid as mentioned above because the financial institution reports these payments, so you don't have to.

You can get more details about this in the following article: Understand which payments are excluded from a 1099-NEC and 1099-MISC. You'll find other links on what certain payments should be reported.

However, once you've verified that the payments should be reported, I recommend reviewing the contractor entries and accounts associated with them. This is done to ensure that they are properly mapped to report 1099.

Here's how:

1. Select Reports and enter Transaction List in the search bar. Then, select Transaction List by Vendor.
2. Choose Customize.
3. Set the Report period to Last Year (or Last Calendar Year).
4. Go to the Rows/Columns section and choose the Change columns link then put a checkmark on the Split box.
5. Go to the Filter section. Then, check the Vendor box, and from the dropdown, choose 1099 vendors who are in question.
6. Click Run report.

After that, look under the Splits column for what accounts the contractor's transactions were tied to. If you see the word "SPLIT," select the transaction to see details on what accounts were affected. If this is a Bill Payment, access the Bill to see what expense accounts were affected.

If you need to see other related information about 1099 and be updated with this form, you can read this article: Get answers to your 1099 questions.

You can always post here in the QuickBooks Community if you have other concerns or inquiries on managing 1099 in QBO. I'm always here to make sure that everything is taken care of, MarshaClark. Have a great day!