Question

How do I edit payment amounts made to contractors prior to sending a 1099

Forum|Forum|6 years ago
January 23, 2020
4 replies
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Original commenter did not share additional details

QuickBooks Online

In QuickBooks Online, 1099 amounts are comprised of all non-Credit-Card transactions recorded in the previous tax years. In order to change this amount, you'd either have to add, remove, or edit those types of transactions.

Here's how to do this:

Select Expenses from the left navigation bar, then choose Vendors.
Click the name of the vendor to open the profile.
Go to the Transactions List tab.
Find the payment and double-click it to open.
Enter the correct amount, then click Save and close.

After that, you can refer to this article: Prepare and file 1099s for the detailed steps on how to submit the form in QuickBooks.

Thank you for posting here in the Community. Don't hesitate to leave a comment below if there's anything else you need, and I'm glad to help you out.

J

Jackieat_home

We set up QB this past year but didn't start using payroll until 2023. One of our contractors bought a house from the owners and the payment has been deducted from the checks. I need to add that back in as payment on the 1099 but have already set up the loan account so I can't have it as a payroll expense. I was hoping to just edit the 1099 amount but that doesn't seem possible. How can I amend the 1099 without adding expense to the company?

S

SashaMC

Hey Jackieat_home,

Thanks for reaching out to the Community! You would need to work directly with the IRS to make a manual amendment to your 1099 forms. Use these IRS instructions to do so. Once corrected, provide the corrected return to the recipient or contractor yourself.

Please let me know if you have any other questions! My team and I are here to help. Bye for now.

Rustler

Why would you edit a payment made?

Doing so will also mess up the reconciliation too, and the audit trail will show that edit

the contractor is in business, he sends you a bill and you pay it. The amount of the bill is reportable on the 1099 if it was paid by cash or check.

If he says he should not be reported for something he calls reimbursed expenses, then you need to get the original expense receipts from him, and enter those in your books. Both of you can not claim the same expense.

C

CT99

We need to edit a few of ours because we didn't start using QB until February.

G

Gandres1

We are a small business still learning Quickbooks. Our company got invoiced from one of our 1099 contractors through their Quickbooks program. The contractor was not yet set up yet. The owner of the company went ahead and paid through the company checking account via debit card. The contractor has since been added to Quickbooks. How do I go back and add this payment for 1099 purposes?

Thank you,

R

ReymondO

Thanks for joining the thread, @Gandres1.

You can record these transactions as a regular check or expense in QuickBooks Online (QBO). Here's how:

Click + New and select Check or Expense.
Choose a Payee from the drop-down ▼ menu.
Select the Bank Account, Cash Account, or Credit Card you used to make the purchase.
In the Category details section, click the dropdown menu ▼ to select the tax category that fits your need.
Enter the Amount of the purchase .
Click Save and close.

Just make sure to select the boxes that represent the type of payments made to all of your contractors this year when preparing 1099s.

For additional info, please check out this article: Create and file 1099s with QBO.

Please don’t hesitate to add a comment below if you have additional concerns or questions about managing transactions for contractors. I’ll be here anytime to help. Have a good one!

G

Gandres1

Original commenter did not share additional details

J

jmartini74

I have a similar question. We have a contractor who changed their tax status mid-year, so that payments for the first half of the year need to be on their 1099, but thereafter they are an S-Corp and those payments should not be included. Payments are all for the exact same expense/service, so we don't want to reclassify any of them to a different expense account. QuickBooks used to let you exclude certain payments from 1099s or even allocate individual payments between 1099 and non-1099. Why did they change it??? I hate that they presume what users *should* do when the situation is often more complex, or assume that users aren't capable of making these decisions. Help!

Adrian_A

Hello jmartini74,

We understand how convenient it could be to be able to have the option to exclude payments.

While this option is currently unavailable, I'd recommend reaching out to the IRS so they can guide you accordingly on the best way to exclude the transactions.

Moreover, you can check this article on how you can create and file 1099: Prepare and file 1099.

Keep me posted whenever you have concerns about 1099.

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