I overpaid a contractor and they sent my a check for the excess. How do I reflect the correct payment amount in Quickbooks so their 1099 doesn't have an overpayment?

Welcome to the Community, @njw-thecreativep.

I'm here to help you record your excess payment returned by your contractor so the 1099 won't show overpayment.

We'll create a bank deposit and assign it to the correct expense account you use to pay your contractors. Here's how: 

1. Go to the + New button.
2. Select Bank deposit.
3. Go to the Add other funds to this deposit section, then enter the credit amount and all other necessary details.
4. Ensure to select the correct vendor in the Received From column and Account.
5. Click Save and close or Save and new.

Feel free to read this article for more details: Record and make bank deposits in QuickBooks Online.

Ensure to link this to the check with the correct expense account to contra the balance of the excess payment.

If you want to learn how to add transactions directly to an account register, you can read this article: Manually add transactions to account registers in QuickBooks Online.

For additional questions about recording your contractor's transaction, click the reply button below. Keep safe and have a good one.