1099 filing

@mattb89  Electronic payments do not go on a 1099-NEC nor a 1099-MISC.

They do go on a 1099-K, but this is not something you would provide; it is a form provided by their merchant service provider, consisting of all the amounts they were paid electronically.

Assuming you entered it into QB correctly and you did not pay them by cash or check, then the system is working as it should.

If it did not stop you, then both you and the merchant service provider would be reporting the same income to the IRS as if it were not the same income, effectively doubling the income for your contractors reported for those particular jobs. Not a great look on an income tax return.

You still get to write it off, so don't worry too much about it.

Hi there, @mattb89.

I agree with @FishingForAnswers about where electronic payments go. It's right that these types of payments go to Form 1099-K. To elaborate, Form 1099-K is an IRS form used to report payment card and third-party network payments. The IRS requires payment providers like Intuit QuickBooks Payments to report these transactions and furnish 1099-K forms.

It helps you report your taxes and summarizes the sales activity of your Intuit QuickBooks Payments account. This is provided to QuickBooks Payments customers when the account meets specific criteria such as the following:

• You must be based in the US
• You must have $5,000 in total gross volume in the previous calendar year or as required by your state.

Please be aware that filing requirements can vary by state and may have lower reporting thresholds than those set by the IRS. Before the calendar year 2024, the IRS 1099-K threshold applied to merchant accounts based in the U.S. was $20,000 USD in total gross volume and 200 transactions.

You can download Form 1099-K from the Merchant Service Center by January 31. Here's how:

1. Sign in to the Merchant Service Center.
2. Choose Download Form 1099-K from the Activity & Reports menu.
3. Click Download.

You may also use this article to view further details on why and how Intuit generates a 1099-K form: Understand how Intuit makes Form 1099-K.

Furthermore, this reference answers the most frequently asked questions about Form 1099s in QBO: Get answers to your 1099 questions. It includes topics about Form 1099-NEC, Form 1099-MISC, and Form 1099-K.

Learn more about what form and how you prepare 1099s by Exploring QuickBooks Payroll. Doing so will help you simplify your payroll processes.

If you have any concerns or questions regarding your 1099-K form, @mattb89, or any other related tax forms, please don’t hesitate to reach out to us. We are always here to help you. Have a great day!