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Deadwood Al
December 5, 2023
Question

1099 reporting & QB instructions

  • December 5, 2023
  • 1 reply
  • 0 views

QBDT 2023+

From the QB instruction "Modify your Chart of Accounts for your 1099-MISC and 1099-NEC filing"

"If you need to file both the 1099-NEC and the 1099-MISC, you need to have a different expense account for each form.  A single account can only be used for one form when you use QuickBooks to create your 1099s. "

 

We have several vendors who are not corporations and would appear to be candidates for 1099 filing; However, their expenses are not all coded into one single GL account, and for accurate financial reporting they can't be. For example, we have several events each year for the public, and we have a variety of vendors preparing for those events ... wiring for sound and lights for entertainers, entertainers, printing posters and other material for the event, etc. Each of these events could have several expense categories, and thus, costs could easily be booked into multiple GL accounts in order to accurately reflect the "profit or loss" for those events.

 

Am I reading the QB instruction incorrectly, or does QB seriously expect all the totals on the 1099 to come from one single account? How is it possible to reflect accuracy in financial reporting using only one single account? We can't really be the only organization with this issue ... can we?

 

Need some help and guidance on this.  Or maybe just a slap upside my head to make me read this differently? Thanks in advance for either one.

 

1 reply

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Ethel_A12
December 5, 2023

Hello there, @Deadwood Al.

 

Let me share some information about filing 1099 in QuickBooks Desktop.

 

For these events that you have designated into different accounts, you can create sub-accounts and put them under one parent account. This way, you can select the parent account when filing 1099.

 

Here's how:

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. From the Account ▼dropdown, select New.
  3. Select an account type, then select Continue.
  4. Enter the account details.
  5. Choose the Subaccount of checkbox.
  6. From the Subaccount of ▼dropdown, select the parent account.
  7. Click Save & Close.

 

Make sure the parent account and sub account have the same account type.

 

Here is an article about adding sub accounts in QuickBooks Desktop: Add, edit, or delete accounts in QuickBooks Desktop.

 

For future reference, you can read this article about creating and filing 1099s: Create and file 1099s with QuickBooks Desktop.

 

Feel free to click the Reply button if you have questions about 1099s in QuickBooks Desktop. I'm always here to help. Have a great day.

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Deadwood AlAuthor
December 5, 2023

to Ethel_A

Sorry, but giving me instructions for QuickBooks Online probably doesn't help when I indicated in my post that I am using QBDT+ 2023 (Desktop = DT), and creating sub-accounts is too late for this year.  There are many, many postings that would have to be altered and our COA would grow significantly. Seems like another example of Intuit creating something that would be extremely difficult in the real world. Seems like it would have been simpler to create a flag in each vendor to identify NEC or MISC, and then just report on all the postings to that vendor rather than approach it from the General Ledger side of things and allow only 1 account for NEC or MISC. Do any of the people writing the code for QB have any accounting background in the real world where activity takes place? Sorry to be rather blunt, but if your answer is the only correct one for QuickBooks in 1099 reporting, then this is another example of where QB needs users to use an alternative solution to accomplish a task. Too many times the answer to a posting in the forum is
"use Excel to ..." do whatever the question for help asked. For all the good things that QB does, there are instances where users need to step outside of QB to find solutions to necessary operations. Government reporting shouldn't be one of them.

 

I'm hoping that someone has better news for me ....

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Deadwood AlAuthor
December 6, 2023

The ability to select a number of accounts when preparing 1099's ast time I did 1099 with QB was prior to the introduction of NEC, so there wasn't an issue of a single GL account: when you did the wizard you could select a number of accounts to include for the total. I asked the person who did 1099's here last year, and she said the wizard operated the same way, and there were 1099's last year, so ????? The vast majority of 1099's are NEC, but we do have a handful of MISC for rent, attorney, etc., and I would assume we could select different accounts to include in that run.

 

 

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