When preparing 1099s, why are some of my vendors and contractors showing up as "non-reportable payments"? Their amounts are reportable (over the threshold)

Hello there, mleydon-cihssinc.

I'm here to share some insights about payments that are included when preparing 1099-MISC and 1099-NEC forms.

When preparing 1099s in QuickBooks, keep in mind that payments made to 1099 vendors using a credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution will be the one to report these payments, so you don't have to.

If you're using QuickBooks Online and QuickBooks Contractor Payments, you can run a report to verify the excluded payments.

Here's how:

1. Go to Payroll and select Contractors.
2. Choose Prepare 1099s.
3. Go to the Review recipients and payments totals window.
4. Select the ‌Tracked for 1099s tab.
5. From the Reportable payments only ▼ drop-down click on Non-reportable payments only.
6. Note the column titled Non-reported totals. You can select the totals in this column to see a report that shows payments not included in the 1099 NEC or MISC totals. Including payments under the threshold. 

This will report help you double-check if payments should indeed be excluded. Also, payments are excluded if the following terms are in the check number field: Debit, Debitcard, DBT, DBT card, DCard, Debit cd, Visa, Masterc, MC, MCard, Chase, Discover, Diners, Paypal. 

Here are some articles for more information: 

• Understand which payments are excluded from a 1099-NEC and 1099-MISC
• Get answers to your 1099 questions

Let me know if you still have follow-up questions or concerns about 1099s. I'll be here to assist. Have a great day!