When you pay contractors in check, cash, or direct deposit, you must file the 1099s tax forms with the IRS. For QuickBooks Desktop users, they are provided with a time-saving and efficient way of filing 1099. This is called QuickBooks Contractor Payments, which uses the already available info to file 1099 in QuickBooks desktop.

Once you get the forms ready, you can print them and mail them to IRS or simply file them online. In the same way, you can email the 1099 forms to the contractors or mail the printed copies. However, preparing and filing the 1099 forms might seem like a difficult task. That's why we have compiled a layman's guide to help you file the 1099 forms.

We suggest you call our QB ProAdvisors at +1-(855)-955-1942, who will walk you through the procedure of e-filing 1099 forms. If you get stuck anywhere or have a query, they will assist you in real time.

Essential Things To Know Before Filing 1099

Before you e-file the 1099 form in QuickBooks, you need to know when and for which vendors or clients you need to file the forms.

Why do you need to file the 1099 form?

You must file the 1099-NEC form for any nonemployee, such as contractors for whom you paid USD 600 or more. Remember that the IRS doesn't let you report electronic payments like debit card, credit card, gift card, or PayPal payments on 1099-MISC or 1099-NEC forms. The payment service involved already reports these payments, so QuickBooks Desktop already separates them.

You need to file the 1099-NEC form for any non-employee whose federal income tax you withheld as per the backup withholding rules.

When do you need to file the 1099 forms?

You should submit the 1099 forms to the IRS and contractors before 31 January. Moreover, please be early so that the 1099 forms can be postmarked to your contractors before the end due date, i.e., 31st January. If you are running out of time, you should opt to e-file the 1099 forms.

Also, remember that some states might require you to file the 1099s separately.

How Can I File 1099 in QuickBooks Desktop?

Filing a 1099 form in QB Desktop consists of several steps. In this section, we will elaborate on these steps and guide you through the process.

  1. Set Up the 1099 account

You might categorize the contractor payments into various categories or mark them all as non-employee compensation, whichever is suitable for you. If you have made different types of payments to the contractors, you will need to file both 1099-NEC and 1099-MISC. Additionally, you will also require to adjust your accounts so that you can track different kinds of payments individually.

  1. Update QuickBooks Desktop

Before you file the 1099-NEC and 1099-MISC forms, update the QuickBooks Desktop. Moreover, in case you face an issue updating the QuickBooks Desktop, you can check the box for reset updates and download the updates.

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  1. Create 1099 Forms

Here are the steps to creating the 1099 forms in QuickBooks Desktop.

  • Open Vendors options and choose 1099 forms followed by Print/E-file 1099 Forms option
  • Make a quick backup of your QuickBooks company file and save it to an external storage device.
  • Now, click on Get Started and choose the forms you want to file. When you need to file 1099-NEC and 1099-MISC, you might need to file both forms.
  • Usually, people use Nonemployee compensation, Box 1 on the 1099-NEC, but you should talk to your accountant about it.
  • For the states of New Jersey and Wisconsin, the 1099 forms have special rules for 16 and 17 boxes.
  • Now, choose the vendors and then continue and verify the vendor information.
  • Follow the on-screen instructions to select and review the vendors and payments.

Once you are done, import the data into Tax1099 and then e-file 1099 forms. Once done, you can always check the filing status on your account.

Get Technical Assistance

The above methods should guide you on how to file 1099 in QuickBooks Desktop. However, if you have a query or find it difficult to file the 1099 forms, you can connect with our QB ProAdvisors at +1-(855)-955-1942. These QB experts have the subject knowledge required to guide you to file IRS forms efficiently.

Frequently Asked Questions

Q1: How do I prepare a 1099 form in QuickBooks Desktop?
A1: Open QuickBooks Desktop, go to Vendors > Print/E-file 1099s > 1099 Wizard, select the vendors, map accounts to 1099 categories, review the details, and then print or e-file.

Q2: Can I e-file 1099s directly from QuickBooks Desktop?
A2: Yes, QuickBooks Desktop supports e-filing through the 1099 E-File Service. You can submit forms electronically to the IRS without mailing paper copies.

Q3: Do I need to update QuickBooks before filing 1099s?
A3: Yes, keeping QuickBooks Desktop updated ensures accurate form alignment, correct IRS thresholds, and smooth 1099 filing.

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Q4: Which vendors need a 1099 in QuickBooks Desktop?
A4: Vendors who received $600 or more for services, rent, or contract work in a tax year typically require a 1099, unless they are corporations.

Q5: Can I reprint a 1099 from QuickBooks Desktop if needed?
A5: Yes, you can go back to the 1099 Wizard in QuickBooks, select the vendor, and reprint the form anytime before the IRS deadline.

Q6: How do I check if a vendor is marked as 1099 eligible?

A6: Open the vendor profile, go to the Tax Settings tab, and make sure the "Vendor eligible for 1099" box is checked.