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1099-NEC Preparing in QBO

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October 13, 2020
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Hello-

I have used the "Prepare 1099" feature in QB Online where is prepares, files and mails the forms automatically for 1099-Misc. Will this also now happen with 1009-NEC in QBO and/or be a second open to use?

Also, I do not understand the difference in reporting these two 1099's. All "Independent Contractor's" over $600 are allocated to get a 1099-Misc. Will this automatically change to knowing it needs to be 1099-NEC now? Or do I have to create a new Chart of Accounts and update/fix all the previous bills from this year?

Thank you,

CrossR

QuickBooks Online

Best answer by MariaSoledadG

Allow me to provide a few information about 1099-NEC, CrossRiver.

For now, we haven't received any update on when the 1099-NEC will be implemented in QuickBooks. Our product engineers are closely monitoring and working on complying with IRS regulations.

In the meantime, you can continuously use the Prepare 1099 feature in QuickBooks Online (QBO) until further notice. I also encourage you to visit our blog site so you'll be able to get the latest news about QuickBooks and what our Product Care Team is working on.

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day.

MariaSoledadGAnswer

Allow me to provide a few information about 1099-NEC, CrossRiver.

For now, we haven't received any update on when the 1099-NEC will be implemented in QuickBooks. Our product engineers are closely monitoring and working on complying with IRS regulations.

In the meantime, you can continuously use the Prepare 1099 feature in QuickBooks Online (QBO) until further notice. I also encourage you to visit our blog site so you'll be able to get the latest news about QuickBooks and what our Product Care Team is working on.

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day.

L

LC1210

Since these 1099's have to be prepared by Jan 31, 2021 when can we expect the update on QB since I prepare these forms myself with my program which is a 2019 QB.

C

ChristieAnn 11

Hi there, LC1210.

Currently, we don't have the specific time-frame as to when will be the completion of the updated Form 1099-NEC in QuickBooks Online. Our product engineers are making sure that QuickBooks is compliant with all the IRS regulations when it comes to filing the tax forms.

To learn more about the 1099 form and how you can prepare for the 2020 tax season, kindly check out this article: What is a 1099 and do I need to file one?. It includes topics about 1099-NEC, 1099-MISC, and steps on how to e-file your 1099's to name a few.

I'm also adding this IRS article for further details about 1099-NEC: Instructions for Forms 1099-MISC and 1099-NEC. It contains the complete set of instructions and the latest information about the form.

In the meantime, you can visit our QuickBooks Blog from time to time to keep updated on our latest QuickBooks updates and future enhancements.

Please let me know if you have other concerns. I'm just around to help. Take care always.

J

jp599

I did an update on my QB Pro Plus 2021and now there are zero files in my 1099's report! What do I do?

J

JonpriL

Hello @jp599,

You're on the right track in updating and installing the latest version of QuickBooks. Let me help share information about how you can prepare your 1099 NEC forms.

To start with, you'll have to modify your chart of accounts and create a new account to be used to track the payments made for your 1099 - NEC forms.

That being said, learn more about how you can prepare the form with the detailed steps outlined in this article: Learn what you need to do in QuickBooks if you need to file both a 1099-MISC and 1099-NEC.

Additionally, I've also included these helpful articles for your guidance once you need to art your year-end preparations:

If you have any other questions, please let me know in the comments down below. I'll be here to lend a hand. Stay safe and well!

MariaSoledadG

I have another way to ensure that you'll find vendors on the 1099 list, Zakbar.

There are a few steps you can take now to ensure your chart of accounts is properly mapped for both the 1099-MISC and 1099-NEC forms and reports.

If you using QuickBooks Online, first create a 1099 Transaction Detail report to identify amounts paid to which accounts.

Choose Reports.
Search for the 1099 Transaction Detail Report.
Run the report and verify the amounts are showing in the correct accounts for the 1099-NEC and 1099-MISC. This will allow you to map the accounts as you go through the 1099 process.
You can also use the 1099 Contractor Balance Detail or 1099 Contractor Balance Summary reports if either of them add more information.

Step 2: Add a new account

Add a new account to your Chart of Accounts to track the separate payments.

Go to Settings ⚙, then select Chart of Accounts.
Select New to create a new account.
In the Account Type ▼ dropdown menu select the type of account, Expense, Other Expense or COGS.
In the Detail Type ▼ dropdown, select the detail type that best fits types of transactions you want to track. Learn more about detail types.
Give your new account a name. (ex. 1099-NEC Federal Income Tax Withheld) You can use the info under the detail type to add a name that fits.
Add a description.
If you’re adding a sub-account, select Is sub-account and then enter the parent account. If you need help, learn more about parent accounts and subaccounts.
- If you started the account on another date, select Other. In the Select a date field, enter the date you want to start tracking money in the account in QuickBooks. In the Account Balance field, enter the balance of the account for the date you choose.
Select Save and Close.
Repeat this process for each new account to be reported on the 1099-NEC or 1099-MISC.

Please read this article to complete the steps: How to Modify Your Chart of Accounts For Your 1099-MISC and 1099-NEC Filing.

For QuickBooks Desktop, if you need to file both the 1099-NEC and the 1099-MISC, you'll need to create a new expense account for all the accounts that will be reported on the 1099-NEC or 1099-MISC. A single account can only be used for each form. Then, once you have set up your new expense account in your QuickBooks file, you will need to use a journal entry to move the amounts from one account to another.

Also, make sure that you've properly set up your vendor profile so that the names will show on your report.

Go to Vendors, then open the Vendor Center.
Select and open the vendor's profile.
Go to Tax settings.
Tick the Vendor eligible for 1099 box.
Enter their tax ID.
Ensure other information is correct by checking it in the tabs.
Once done, click OK.

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Then, make sure to run the 1099 Wizard to verify the data, map the accounts, and prepare the form for filing. Here's how:

Go to Vendors, then hover your mouse on Print/E-file 1099s.
Choose 1099 Wizard.
On the pop-up window, click the Get Started button.
Choose your 1099 vendors, then click Continue.
Verify their information and other details, then proceed with Continue.
Map the accounts for 1099.
Review the payments on the next page.
Confirm the entries, then finalize the form by either printing or e-filing it.

Please read this article for your 1099's: How to Modify Your Chart of Accounts For Your 1099-MISC and 1099-NEC Filing.

For additional reference, check out these help articles for your payroll.

Post a comment on this thread if you have any other questions with 1099. We're always right here to help.

K

kulike

Hi,

When I go to prepare 1099s I can see all the contractors (their records have 1099 checked), but

when I go to process forms in Categories I see both NEC (contractors) and MISC (Rents) as Box 1.

On choose both I assign from dropdown menu the accounts but when I go to the next step it only shows

MISC (Rents) account - none of the contractors for NEC.

When I go to 1099 Transaction Report, none of the contractors show up although they are assigned to

be filed for 1099 on each one.

For contractors I have used a Parent Account CONTRACTED SERVICE (EXPENSE). Should I create a

new account, Cost of Labor? or Cost of Goods?, and move the current contractors from Expense account?

Very confusing ;-)

R

RCV

Thanks for bringing this one to our attention, kulike.

The option to get rent into the 1099 NEC form is unavailable. QuickBooks only lets us report non-employee compensation and will automatically exclude payments that are not part of the 1099-NEC. We can report a payment as NEC if we met the following criteria below:

You made the payment to someone who is not your employee, for services in the course of your trade or business including nonprofit organizations and government agencies.
You made payments to the payee of at least $600 during the year.
You made the payment to an individual, partnership, estate, or, corporation (in some cases).

Also, there are a few steps you can take now to ensure your chart of accounts is properly mapped for both the 1099-MISC and 1099-NEC forms and reports. We can create a 1099 Transaction Detail report to identify amounts paid to which accounts. Here's how:

Choose Reports.
Search for the 1099 Transaction Detail Report.
Run the report and verify the amounts are showing in the correct accounts for the 1099-NEC and 1099-MISC. This will allow you to map the accounts as you go through the 1099 process.
You can also use the 1099 Contractor Balance Detail or 1099 Contractor Balance Summary reports if either of them add more information.

For more details about this one, see the How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing article. To learn more about the 1099 form and how you can prepare for the 2020 tax season, kindly check out this article: What is a 1099 and do I need to file one?. It includes topics about 1099-NEC, 1099-MISC, and steps on how to e-file your 1099's to name a few.

On the other hand, for contractors who have used a parent account contracted service (expense), we suggest contacting your accountant about this one. They'll guide you on how to best handle this one if there's a need for you to create a new account, cost of labor or cost of good, or move the current contractors from the expense account.

If you need further assistance in preparing your 1099 forms, feel free to reach out to our Customer Support Team. They'll pull up your account in a secure environment and help you with this one. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one. Here's how to reach them:

Go to the Help menu at the upper right.
Select Contact Us.
Enter your concern.
Click Let’s talk.
Choose Start a chat. and type in your contact info.

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Have a great day ahead.

M

m merchandel

I need to speak with m merchandel. We got cut off and had already spent about an hour working on my problem

R

ReyJohn_D

The Community has your back, @m merchandel.

First, may I know the QuickBooks problem you're having? Is it related to the 1099 form? If so, you can leave a comment or add some details below. This way, I can assist you right away.

Meanwhile, I can help you get in touch with our live support. One of our representatives can help you connect with the previous agent (m merchandel).

You can also ask for assistance from other support agents and continue where you left off.

Please review our support hours to ensure they can assist you promptly.

Here's how to contact our support:

Click the Help (?) menu at the top, and then choose Contact Us.
If you're routed to the QB Assistant page, type Contact Us.
Select Talk to a human, and then click the Never mind option.
Choose I still need a human.
Click the Contact Us button.
Enter your question or concern on the search box, and then click Let's Talk.
Select either the Get a call or Start messaging option.
Please follow the on-screen steps to proceed.

Also, you can visit our general support page for more QuickBooks tips.

I'll keep this thread open for further QuickBooks discussion. Feel free to click the Reply button to add your comments below. I'm looking forward to your reply soon!

Pabz_L

You’re doing the right steps, @ARP12.

The reason why you don’t have a Setup tab in the payroll settings is that your 1099 was already set up. You’ll want to click the 1099 NEC then proceed with the steps given by CharleneMae_F to edit your withholding number in QuickBooks Online.

Also, you can contact our support team. A representative will further assist you with the process.

Here’s how:

1. Click the Help menu in the upper right-hand corner.

2. Choose Contact Us.

3. Enter a short detail about your concern and hit Continue.

4. Click the Start a chat button.

If you need to know more about the QuickBooks Online support hours type, you can refer to this link: Support hours and types.

You've got me here in the Community if there's anything else you need. Keep safe always, @ARP12.

A

ARP12

The problem seems to be that the company is based in one state but has an independent contractor in another state. The independent contractor works from home and has never worked in the state the company is based. The company has a withholding number in the state the independent contractor is based but does not have a physical address in that state because everyone works from home. QB seems to think the 1099 info needs to be reported to the state the company is based in not the state the independent contractor is working in. I cannot get anyone on the phone from either state's revenue department so I can get clarity. Does anyone know which state the 1099 should be filed?

J

JonpriL

Hello @ARP12,

Ideally, instructions for filing your 1099 form is mandated by your state agency. You can read this article to learn more: Do I need to file 1099 forms with my state?

You're on the right track, I'd still recommend contacting your state agency for clarifications about where should you file your forms especially with your case and your contractor's situation.

On top of that, I've got you this helpful article for guidance in preparation for the 2020 tax season: 2020 Year-End Resources.

If there's anything else that I can help you with, please let me know by leaving any comments below. I'll be here to lend a hand.

P

PattyLU

Not sure if everyone has found the solution but this worked for me this morning (1/26/21) - now off to make the JEs to recategorize my vendor payments!

https://quickbooks.intuit.com/learn-support/en-us/form-1099-misc/how-to-modify-your-chart-of-accounts-for-your-1099-misc-and-1099/00/705869

B

beheard29

Hello,

I filled out the 1099 MISC. for a contractor and it was after the deadline. The amounts weren't filled in on the form. How do I still get the 1099 to my contractor even though its past the deadline

C

Charies_M

Let me show you how to get your contractors 1099 in QuickBooks Online (QBO), beheard29.

First is review and make sure the contractor is set eligible for 1099. This way, you can file 1099 for your contractor. Here's how:

Go to Vendors
Select the vendor you want to track and open their profile.
Select Edit.
Select and check the Track payments for 1099 checkbox

Once done, you can visit this article for additional information about setting up contractors for 1099's. Click the link for QuickBooks Online: Set up contractors and track them for 1099s in QuickBooks

For more details, you can check out this article on how to prepare and file your Federal 1099s with QuickBooks Online.

You can run the 1099 Contractor Balance Detail Report and make sure to check the column for Amount. Also, filter the Report period to be on the year 2019.

Here's how:

Go to Reports.
Enter 1099 Contractor Balance Detail on the search bar.
Click the Settings icon from the report.
Under Change columns, check the box for Amount.
Customize other filters (Report period: 2019) and click Run report.

I'm also sharing these articles in case you need a reference while working with 1099's in QBO:

Additionally, I've included these articles that'll help you in preparing and filing your 1099s. This ensures you're able to file them on time:

I'm only a post away if you need more help in managing your 1099, elp5. It's always my pleasure to help you out again.

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