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M
mkslch
December 27, 2023
Question

1099s

  • December 27, 2023
  • 1 reply
  • 0 views

Hello,

I recently implemented QBO-Advanced and am pulling together 1099 information for annual reporting.  I don't think QBO-Advanced will handle my 1099 reporting correctly, because the accounts $$ is coded to do not tell me if an amount is taxable.  For example, if I have a 1099 consultant that I pay $10K/month, and I reimburse them $500 for supplies and they have provided a receipt, I only 1099 them on $10K * 12 = $120K.  The $500 is not taxable to them because they provided a receipt for it, and I must remove it.

 

Is there a way to adjust 1099 amounts for items like these?  I can't seem to find anything about this, and don't want to waste my time mapping accounts for 1099 if I can't adjust the actual reported amounts to the correct amounts.

1 reply

R
rvrfrf
December 27, 2023

Welcome to the Community, mkslch. I appreciate your detailed information.

 

I've found a thread about what to do in some scenarios with reimbursements, which may be worth reviewing: 1099 Contractor Expense Reimbursements

 

If your scenario is different than what's covered in that thread, I'd recommend working with an accounting professional to identify other methods for adjusting 1099 amounts. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:

 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:

 

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.


     
  2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.


     
  3. Hit Send message.

 

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

 

If there's any additional questions, I'm just a post away. Have an awesome Wednesday!

M
mkslchAuthor
January 2, 2024

After research, it appears if I want QBA to do my 1099s, I would have to set up 2 accounts for every GL account - one for taxable and one for not taxable.  This would create a huge mess in my COA and make coding invoices hard for an AP person when I hire them.

 

I am well aware of the rules surrounding 1099.  QB could fix this by generating the amounts from the GL as coded, then adding an "adjustment" column so we could adjust the 1099able amount to the correct amount based on whether or not a receipt was submitted for additional amounts paid in excess of the contractor fee. It's not really usable for accountants being forced to use QB for startup companies.  I'm now going to go have to purchase efile magic or some other 3rd party software and manually key it all.  I'd have hoped Intuit would have created a way to do this by now - does not seem like it would be a huge lift for your product team.

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