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Set up 1099 accounts

 You must set up Vendors, Accounts and Preferences to create a 1099 in QuickBooks. This article will help you set up 1099 accounts. Transactions recorded against these accounts will then flow to the 1099 form.


Detailed instructions

Set up a 1099 account:

  1. Choose Edit > Preferences.
  2. On the left side of the Preferences window, scroll down and select Tax: 1099.
  3. Click the Company Preferences tab and then select Yes to the question "Do you file 1099-MISC forms?"
  4. The next question asks if you want to map your accounts, click on the hyperlink click here.
  5. Select the accounts to associate with each 1099 category that applies to your business for reporting and tax purposes:
    • To associate one account, click the Account drop-down arrow and select an account from the list.
    • To associate more than one account, click Selected Accounts or Multiple Accounts from the top of the drop-down list, and then select the desired accounts in the Select Accounts window. Click OK when all appropriate accounts have been selected.
    • Your business may not need to report on all 1099 categories; many businesses report amounts only for Box 7: Nonemployee Compensation. For more information on reporting requirements, please consult an accounting professional or the IRS.
  6. (Optional) To change a threshold amount, enter the new amount in the Threshold column.
    Important: The threshold amount is the minimum amount you must report to the IRS. The amounts QuickBooks displays are correct as of the date your copy of QuickBooks was manufactured. When the IRS changes a threshold amount, you must enter the new amount yourself, as QuickBooks cannot update the amount for you. To obtain the latest threshold information, visit the IRS web site and request a copy of Instructions for Forms 1099, 1098, 5498, and W-2G.
  7. Click OK.

Note: Because an account can belong to only one 1099 category, the accounts you select should be the same accounts you use to track payments related to your 1099 vendors. For example, if you set up an expense account named "Payments to subcontractors" and you select it to track the 1099 category Box 7: Nonemployee Compensation, you cannot use this account for any other 1099 category. Typically, accounts associated with the 1099 categories are expense accounts, but you can also associate other account types. If you are unsure of which account to use, please consult your accounting professional for assistance.


KB ID# HOW13526
5/28/2016 6:47:59 PM
QYPPRDQBKSWS05 9132 Pro 2016 a195ea